Each month you’ll get an article headline like “Inflation at 3% in July” or whatever. Does that mean prices went up 3% in July, or does it mean across this year the average after July is 3%? I know prices are going up lots lately but if it’s 3% each month that’s 36% a year? Please explain to my silly little brain.
In: Economics
What you are talking about is probably the months average prices compared to the same month the year before. You can take july’s inflation in respect to the previous month but I doubt that would give you something like 3% every month if the economy isnt in big crisis.
There are many ways to describe inflation, what you are problably seeing is the july’s average prices compared to last year’s july. Not this july compared to this june. That is WAY less common way to describe inflation, but it exists too if you search hard enough.
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