You are right, I agree with you. You are so right about deflation.
However, the increase in the price of basic necessities every month causes an increase in the number of people suffering from financial difficulties. It seems that this problem can be solved in the coming months, but the fact that the energy shortage will not be solved in the short term makes things worse.
I think that the fact that the production of many products depends on energy and that the increase in interest rates may reduce production-based investments and cause production to be interrupted.
Posted Using LeoFinance Beta
That is what causes the flip from inflation to deflation (using contemporary terms). The fact people have to pay more for basic necessities means they spend less in other areas. This affects those industries which means layoffs, That ends up crushing demand for everything, which causes recession.
Posted Using LeoFinance Beta