How can inflation be only a few percentage points and yet many goods and services are up over 50% since 2019?
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In addition to what others have pointed out regarding inflation reflecting a basket of prices etc., there’s also the compounding effect. 3.5% inflation over 5 years works out to 19%. Throw in 1 year of 10% inflation and that’s 26%. 1 year of 3.5%, another of 10% and 3 of 5% is 31% etc. etc. These small fluctuations add up, and you never get that back. Suddenly 50% for some goods isn’t too far off.
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