Inflation and Deflation Concerns

The podcast episode discusses the concern of too much deflation following a period of inflation. The managing director of Bain's Macro Trends Group explains that while headline inflation figures have been pleasantly low due to factors like energy prices working their way out, super core inflation, which takes out food, energy, shelter, and used vehicles, is a better indicator of general price levels. Super core inflation is currently below 1990s levels, raising concerns of potential deflation. The potential impact of deflation on retailers, inventory, and consumer behavior is also discussed.