Will "inflation prepping" cause further inflation?
Asked by
Strauss (
23820)
2 hours ago
I’ve heard a lot of talk about stocking up with food and other commodities as a hedge against rising prices due to anticipated inflation. Is this a wise decision, or will it cause further inflation?
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4 Answers
It’s not a bad idea to stock up on essential supplies when it’s cheaper to buy in bulk. It’s when stocking up becomes hoarding we have a problem.
A while back I was in a discussion with someone who was trying to make the point that deflation was actually a good thing for the economy. I think your question, @Strauss illustrates exactly why the opposite is true. Inflation drives people to buy things TODAY because people expect them to be more expensive tomorrow. that stimulates the economy and leads to job growth and the inverse is true with deflation.
I know that’s not exactly what was asked, but it’s speaking to the central question you’re asking whether there is a psychological force to inflation that can perpetuate inflation. I’m not an economist, but I believe this is a known phenomena. Interest rates are the tools for cooling things off to a more manageable rate of growth. Also, staples like basic foods and household goods are a tiny fraction of the overall economy.
It depends how much stocking up is done. If it strains supply, then it’ll cause price inflation.
Not inflation but tariffs.
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