by Robert Hughes
The American Institute for Economic Research
Note: The Everyday Price Index for July is based on incomplete data due to restrictions on data collection by Bureau of Labor Statistics personnel because of the COVID-19 outbreak.
The general price level may be a function of money supply over the long term, but in the short term, prices can reflect ebbs and flows in supply and demand. That is likely the case for consumer prices over the past few months. As economic activity plunged in March and April then began to show some signs of recovery in May, consumer prices also were generally lower. As reopening unfolded and economic activity began to rebound in June and July, many prices likewise rebounded.