Scrap prices and gasoline is going up- that is inflationary.

Housing prices are declining fast – that is deflationary.

Wrong on both counts.

Inflation is caused by in increase in the money supply, not an increase in any single commodity price. If gasoline goes up and therefore you buy less beer the net effect is zero and a smaller waist line.

If the government prints more money (both literally and figuratively) then both beer and gasoline go up and you have inflation.

Without increasing the money supply you have to make a choice and sacrifice something to pay the higher price. I could raise my steel prices to the moon and you can decide not to buy it, at least not from me.

Only the government and the central bank can control inflation.

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