"It stands to reason that when the cost of a service is rising at double and, at times triple, the overall rate of inflation, after a period the marginal utility falls demand for that service will naturally stall and decline.
It's an economic axiom: Nothing can increase faster than the rate of the system forever. "
Which made me think of this other economic axiom.
Households will continue to deleverage. How that deleverage occurs will take multiple forms. Discretionary expenditure will struggle until the deleverage is complete.
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