I don't expect prices to fall back down meaningfully - especially after a few wage/price cycles. However, I do expect them to stop going up, which is just as good after a few wage/price cycles. There's no reason to think the prices will continue to go up 7% per year.
Especially when in your particular example, between January and February, the price of a new car went up 0%, and a used car went up 1.5%, down from last months 3.3%. [1] Gas prices are down 1% and piped gas down 0.5%. There are signs that things are starting to turn around.
> While it is true that not every money supply increase has led to inflation, almost all high inflationary periods coincided with the money supply growing.
Correlation != causation.
> I think you need to check again. We're at 26 S&P. Last time it was this high was 2008. Time before then was briefly in 1890s (not a typo)
It's currently 25.86. In 2020, it was 25. In 2018, it was 25. In 2009 it hit 123. In 2003, it was 32. In 2002 it was 46. In 2001 it was 27. In 1999 it was 33.
Yeah, it's a little higher than average, but that's likely just due to 0% interest rates and a newfound penchant for margin lending. I don't see that as particularly or inherently unhealthy or at all indicative of "asset inflation."
> It's not nothing to the pensioners that saw their wealth evaporate 7.5% in one year and likely more to come. Hopefully social security keeps up...
Pensioners like basically everyone else aren't invested in dollar bills under their mattresses.
