because inflation is a monetary phenomenon .. it rises in proportion to the money supply (mostly reckless spending by congress) or a reduction in supply of goods ..both ends up in higher prices ..
however, higher cost [to producer] doesn't cause inflation, as long as monetary supply remains the same .. aha and that's why all the smarties got it wrong .. for a given monetary supply, marginal higher costs resulting in marginally higher prices resulting in a marginal reduction in demand, which ends up keeping prices just about the same for a slightly lower demand [of expensive items] .. as what people miss is that inflation is calculated using a basket of goods as consumed and not by individual items ..!
& a reduction in demand affects pricing in many ways including lower crude prices & lower transportation costs & in reduction in labor force as seen in payroll numbers
the imported items are roughly 10% higher since the BOY and its not because of tariffs, rather a devaluation of dollar .. it's the reckless spending by congress leading the devaluation of dollar is resulting in inflation & that's why your coffee is 10% more expensive since BOY
i wish the economist had studied, the Boyle's and Charles's laws of Gases ..!
