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Why is hidden inflation a problem?

Updated: 10/23/2022
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13y ago

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It is a huge problem. Something like this happens when the asking price does not decrease but the quality does.

That however is one way of looking at it. Hidden inflation can manifest itself in many ways, another instance is when there is impending inflation rise in a certain asset but temporarily prices are low, shortly accompanied by a sharp rise in prices.

The sudden and sharp increase in prices affect the overall balance of the market. Sometimes such imbalances can have far reaching effects.

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