2026-01-09 01:56:52

Inflation hit a three-year high this quarter, primarily fueled by surging food prices—but here's what matters: beneath the surface, deflationary headwinds are building. The headline inflation spike masks weaker underlying demand, which typically signals tightening liquidity conditions. For crypto investors tracking macro trends, this divergence matters. Strong food inflation can drive central bank caution, while hidden deflation suggests demand destruction in other asset classes. Watch how this plays out in capital flows—risk assets often struggle when real purchasing power compresses while growth signals fade simultaneously.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

14 Likes

Reward
14
8
Repost
Share

Comment

0/400

Rugman_Walking

· 01-12 01:49

Food price hikes are a smokescreen; the real killer is liquidity tightening. After this wave, risk assets will take a hit.

View OriginalReply0

TokenomicsDetective

· 01-11 22:31

Food inflation is scary, but the real killer is the wave of deflationary pressure behind it. --- The central bank needs to be cautious; this time, it's not just surface-level heat. --- Liquidity is tightening, and risk assets should be cautious. --- Demand is truly destroying, and this signal is a bit uncomfortable. --- Soaring food prices mask deeper issues; the crypto world needs to wake up. --- Purchasing power is being squeezed, and growth signals are disappearing at the same time—trouble ahead. --- This kind of divergence pattern is not friendly to risk assets. --- By observing capital flows, you can guess what’s coming next.

View OriginalReply0

HorizonHunter

· 01-09 13:45

Food inflation is high, but underlying demand is shrinking? This doesn't add up, the central bank definitely won't sit still. --- When liquidity is tight, can risk assets hold up? That's the key. --- Surface inflation, hidden deflation—how much does this divergence impact the crypto world? Can anyone clarify? --- Purchasing power is dying, growth signals are also dead—how do we play this game? --- Food prices soaring → Central bank cautious → Liquidity tightening, a chain reaction is coming, everyone. --- Don't just look at the CPI number, what's happening underneath is more important. --- During demand destruction, which assets can survive? Big players, give us some guidance. --- Invisible deflation—does this mean the market is about to collapse? --- Capital flow is the key, focusing on that is the right move. --- Three-year highs but weak demand—this contradiction is full of opportunities.

View OriginalReply0

ruggedSoBadLMAO

· 01-09 02:27

Food inflation is soaring, but underlying demand is collapsing... That's why central banks are becoming increasingly cautious; liquidity is really tightening.

View OriginalReply0

SignatureVerifier

· 01-09 02:26

ngl the surface-level inflation narrative always gets it wrong. that divergence between headline and underlying demand? *that's* the tell. most people miss it because they're not actually verifying the data granularly enough tbh

Reply0

Fren_Not_Food

· 01-09 02:16

With food inflation so fierce, can our holdings still hold up?

View OriginalReply0

AllInDaddy