Reply #22: not so good

[RawMaterials]

What isn’t clear at the moment is the start of a new trend of inflation psychology taking hold. If companies start buying in anticipation of higher costs, the inflation genie has been let out of the bottle. Rising prices can lead to greater demand by boosting inventories, which in turn can lead to shortages and higher prices. It can lead to a vicious cycle whereby prices push up wages. This cycle in turn pushes up prices. The process then accelerates through anticipation and eventually leads to higher inflation rates and on a worst-case basis—hyperinflation