St. Louis Fed, Report: How Inflation and Relative Price Increases Differ
Page(s): 4
“The two figures are reminders that, in trying to understand the effects of inflation (either in the short run or the long run), one must keep in mind that price increases are not even across different categories of expenditures.”
“In addition, inflation masks changes in relative prices, which may affect people’s spending decisions regardless of the changing general price level.”