<p>Of course it is correct to distinguish between them.</p>
<p>Monetary inflation, by <a href="https://en.wikipedia.org/wiki/Monetary_inflation" rel="nofollow noreferrer">definition</a>, is increase in money supply.</p>
<p>Price inflation, by <a href="https://www.investopedia.com/terms/p/price_inflation.asp" rel="nofollow noreferrer">definition</a>, is increase in price level.</p>
<p>There are two completely distinct quantities. Money supply is not price level and vice versa. The two variables have relationship between each other, however, just because variables are related does not mean they are same. Nutrition of pregnant woman is related to size of a newborn baby that would not make size equivalent to nutrition.</p>

CC BY-SA 4.0
2022-07-29T23:36:02.257Z
I don't think it's as obvious as you're making it seem. For instance, for instance I've never heard of any reference to the Fed [price or monetary] inflation target. Just 'inflation target'. The news always mentions 'rising inflation' with no specification. Specifying 'monetary' or 'price' before the word inflation is uncommon. Hence the doubt.
StatsScared
CC BY-SA 4.0
2022-07-29T23:41:46.327Z
@StatsScared inflation without qualifier means price inflation, same way when economists talk about output by default they  mean real output as opposed to nominal one.
1muflon1
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2022-07-30T16:11:32.257Z
However, your discretion is not uncalled for: `For many years, the word inflation was not a statement about prices but a condi- tion of paper money—a specific de- scription of a monetary policy. Today, inflation is synonymous with a rise in prices, and its connection to money is often overlooked.` - [Cleveland Fed](https://www.clevelandfed.org/~/media/content/newsroom%20and%20events/publications/economic%20commentary/1997/ec%2019971015%20on%20the%20origin%20and%20evolution%20of%20the%20word%20inflation%20pdf.pdf). Price changes - exclusion from revelation (Phillips/misery) = monies added.
Nick Carducci for Carface Bank
CC BY-SA 4.0
2022-07-30T16:30:05.497Z
@NickCarducci yes but that’s ancient history for almost last 100 years inflation was used as synonymous for price inflation
1muflon1
CC BY-SA 4.0
2022-07-29T23:24:08.007Z
2022-07-29T23:24:08.007Z
1muflon1
<p>As the questions says.</p>
<p>Should we distinguish between both. Or are they the same thing?</p>

CC BY-SA 4.0
2022-07-29T21:30:56.587Z
What is your definition of monetary and price inflation?
1muflon1
CC BY-SA 4.0
2022-07-29T22:56:11.630Z
@1muflon1, not entirely sure, but I take it to mean 'growth of money in circulation'
StatsScared
CC BY-SA 4.0
2022-07-29T23:08:04.873Z
I assumed you have your own definitions otherwise what is the point of your question? If you google the terms in their current use you can clear see there is difference
1muflon1
<macroeconomics><inflation><monetary-policy>
Is it correct to distinguish between "monetary" and "price" inflation?
StatsScared
# Is it correct to distinguish between "monetary" and "price" inflation?

(Asked by: username_0 on 2022-07-29)

As the questions says.

Should we distinguish between both. Or are they the same thing?

**Tags:** macroeconomics, inflation, monetary-policy

> **Comments:**
> **username_1**: What is your definition of monetary and price inflation?  
> **username_0**: @username_1, not entirely sure, but I take it to mean 'growth of money in circulation'  
> **username_1**: I assumed you have your own definitions otherwise what is the point of your question? If you google the terms in their current use you can clear see there is difference  

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## 1 answers

### Answer by username_1 on 2022-07-29. Score: 1

Of course it is correct to distinguish between them.

Monetary inflation, by [definition](https://en.wikipedia.org/wiki/Monetary_inflation), is increase in money supply.

Price inflation, by [definition](https://www.investopedia.com/terms/p/price_inflation.asp), is increase in price level.

There are two completely distinct quantities. Money supply is not price level and vice versa. The two variables have relationship between each other, however, just because variables are related does not mean they are same. Nutrition of pregnant woman is related to size of a newborn baby that would not make size equivalent to nutrition.

> **Comments:**
> **username_0**: I don't think it's as obvious as you're making it seem. For instance, for instance I've never heard of any reference to the Fed [price or monetary] inflation target. Just 'inflation target'. The news always mentions 'rising inflation' with no specification. Specifying 'monetary' or 'price' before the word inflation is uncommon. Hence the doubt.  
> **username_1**: @username_0 inflation without qualifier means price inflation, same way when economists talk about output by default they  mean real output as opposed to nominal one.  
> **username_2**: However, your discretion is not uncalled for: `For many years, the word inflation was not a statement about prices but a condi- tion of paper money—a specific de- scription of a monetary policy. Today, inflation is synonymous with a rise in prices, and its connection to money is often overlooked.` - [Cleveland Fed](https://www.clevelandfed.org/~/media/content/newsroom%20and%20events/publications/economic%20commentary/1997/ec%2019971015%20on%20the%20origin%20and%20evolution%20of%20the%20word%20inflation%20pdf.pdf). Price changes - exclusion from revelation (Phillips/misery) = monies added.  
> **username_1**: @NickCarducci yes but that’s ancient history for almost last 100 years inflation was used as synonymous for price inflation  

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