Why Do Inflation Rates Go Up When Everyone Is Talking About It?

Examples

1. Your friend buys candy now because she thinks it will be more expensive tomorrow.
2. Workers ask for a raise today because they expect their rent to go up next year.
3. You buy a new phone now instead of waiting, thinking the price will increase later.

More examples

See also

• Why Do Inflation Rates Go Up When People Expect Them to?
• How Does Taxation Actually Affect Inflation?
• How does current inflation impact everyday consumer prices?
• How Does Currency Devaluation Affect Everyday Life?
• How Does the Value of Money Actually Change Over Time?

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