Deflation, Then Inflation, Equals Inflation

Deflation followed by inflation ultimately results in long-term inflation. The value diminishes when liquidity is scarce, so one needs resilience to weather financial storms. Quick financial maneuvers might be overly optimistic given the unpredictable market ahead. The current Consumer Price Index (CPI) doesn’t reflect true inflation and has been adjusted over the years to depict a more controlled economic scenario. This manipulation means that actual living costs due to inflation are likely much higher than reported. Having assets that hold their value is important.