Forget about #CPI
Central banks printing money often leads to #assetInflation as the newly created funds flow into financial markets, driving up prices of assets like real estate and stocks.
This influx of liquidity creates a demand-supply imbalance, making real estate and housing less affordable for average consumers. Moreover, inflated asset prices result in elevated price-to-earnings (PE) ratios, indicating overvaluation in stock markets.
This cycle perpetuates wealth inequality, as asset owners benefit disproportionately while others struggle with affordability and economic instability.