Economic concept

Asset-price inflation

A broad rise in prices of assets such as shares, bonds or property; unlike consumer inflation, it has no single universal official basket.

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Why can asset prices rise without much consumer inflation?

Consumer inflation measures the cost of goods and services consumed now, while investment assets are priced from expected future payoffs, discount rates, risk and scarcity. Easier financial conditions can therefore raise asset prices quickly even when consumer prices respond slowly or remain subdued.