It’s a self-reinforcing cycle of inflation where the inflation continues at higher rates for prolonged periods as it becomes structural. Ie rates go up so landlords pass on to renters who are already struggling with higher food and energy costs, so the workers demand higher wages leading to higher goods and services costs, so houses and energy become more expensive 🔃

Inflation is typically seen as a temporary thing until prices readjust to a new baseline, this is saying they’re going to continue going up in future (see right column) and not rebaseline and stabilise.

Basically, if you think the 30% real inflation (not this ‘core’ nonsense) you’ve dealt with over the past year was bad, buckle up because you’re going to face the same again next year..