Inflation Dynamics and Economic Inequality

This chapter explores the recent trends in inflation and interest rates, noting the unexpected decrease in inflation and potential interest rate cuts that could relieve mortgage burdens on consumers. It highlights the disproportionate impact of inflation on low-income households, particularly through rising prices of essential goods, and discusses the concept of 'cheapflation.' Additionally, the chapter examines the implications of monetary policy on economic inequality, suggesting that current practices favor banks while adding pressure to poorer individuals and families.