Inflation is actually the increase in the money supply. The term is used wrong almost everywhere today.
Price indexes like the CPI are what measure the change in prices of a set of goods.
Inflation can influence prices since the supply of money changed, but they aren't directly linked.
Edit: getting plenty of requests for a source here, especially because you will find countless sources online using the price increase definition.
https://www.clevelandfed.org/publications/economic-commentar...
The every day person uses the culinary definition of tomato, and inflation means that those tomatoes cost more at Walmart.
Everyday people can use whatever definition they want. That doesn't mean economists, the Fed, etc should say "inflation" when they mean "price of goods".
The word has multiple meanings. That’s monetary inflation. The primary meaning in use today is price inflation.
No, that is expansion of the monetary base. Inflation is an increase in price levels. If a country’s money supply contracts while prices rise that’s inflation.
The problem with the metallic definition is a country that loses half its territory and most of its reserves after losing a 19th-century war, thereby setting off double-digit price increases across its economy, doesn’t “inflate” from a monetary base perspective. Once we understood these concepts were separate, we segregated the terms. Insisting inflation refers exclusively to monetary-base expansion is phlogiston-theory stuff.
I'm sorry I just can't find a single source backing you up. All sources I find define inflation as increase in prices.
Do you have a source that this is the „correct“ definition? Wikipedia for example uses the definition you think is wrong, and specifically says that CPI measures inflation.
You've linked to a privately written article ("The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland ") by someone who worked for the Cleveland Fed, who blames printing currency for inflation. No doubt that debasement of the currency increases the nominal prices of things. But it's hard to square the idea that that's all there is to inflation when you consider that lots of countries had inflation after COVID. They didn't all coordinate on printing currency.
But don't take it from me:
https://www.imf.org/en/Publications/fandd/issues/Series/Back...
https://www.investopedia.com/terms/i/inflation.asp
https://en.wikipedia.org/wiki/Inflation
https://www.mckinsey.com/featured-insights/mckinsey-explaine...
https://www.dol.gov/general/topic/statistics/inflation
https://gisme.georgetown.edu/news/what-the-hell-is-inflation... (Inflation used to mean what you claim it means...but doesn't anymore)
https://www.econlib.org/library/Topics/HighSchool/Inflation....
https://www.bankofengland.co.uk/explainers/what-is-inflation
https://www.rba.gov.au/education/resources/explainers/inflat...
https://www.axios.com/2024/05/26/inflation-definition-evolut... (There is some argument that I may too be wrong, and inflation is coming to mean high prices, but when the DNC campaign was talking about low inflation, it was not referring to prices, but change in prices.)
NO.
It is the cost of the goods. What people will pay.
Inflation Contributors:
30% money supply
30% was corporations raised prices specifically under cover of people blaming the government. This was actually listed on earnings calls, for profit.
30% supply chain shortages.
It's not that simple. That might be how it is defined in economy textbook, but in practice, how do government agencies measure inflation? You have predefined basket of consumer goods and record their prices over time, and that price increase is reported as "inflation rate", and that's what gets reported in TV news.
And yet you somehow blame people for misunderstanding the term when the wrong definition is hammered into their brains all the time by all the mainstream media.