1) Would explain stagnent prices, not prices going up as a percentage of total income. And I am about as convinced that there is a massive difference in how much things inflate as I am that the sun will rise tomorrow (one example: compare how much better an iphone you get in 17 vs 07 when they launch with how much gas you can buy for a set amount of hours worked).
2) I am not sure how that would work. If we take gas as an example, then if that is 10% of the cost to produce a good intuitively it should be at most 20% of the cost to produce a good even if it doubles (and might be a lot less, if the new higher cost of gas means it is cheaper to produce closer to the consumer).
2) I am not sure how that would work. If we take gas as an example, then if that is 10% of the cost to produce a good intuitively it should be at most 20% of the cost to produce a good even if it doubles (and might be a lot less, if the new higher cost of gas means it is cheaper to produce closer to the consumer).