Inflation is caused by expansion of the money supply. All this confusion added on top of that is deliberate. The money supply has been increasing at 38% yearly until the last two months where it has been slowed down to 15%. Since it can take up to 2 years before the market catch’s up we are in for inflation worse than Carter’s for at least a year.
My remark was really meant to be taken that they don’t know how bad it actually will be, so they are kind of downplaying it as much as possible right now. When in reality they they indeed do know it will get hot. They said that to try and encourage more people to regain confidence with their consumer spending. They don’t care how many people who take their statement as encouragement, and the position it will put them in if they carelessly spend more than is necessary right now.