Misleading Inflation YoY CPI?
Hi! Not an economist, just interested.
Suppose prices shoot up 10% overnight, but for the next year absolutely nothing moved, perfect 0.
Exactly one year later, CPI YoY would show as 10%, right? But exactly one day later, we would have a YOY CPI of 0%, no?
In fact, if prices stagnated for 5 more years, it would still be something closer to 1.8% a year (considering the 10% increase "amortized" over 5 years), yet wouldn't News articles scream stagflation, as YoY CPI would say 0% for 5 years?
Would love to know if I'm getting something wrong here.
Am I completely getting this wrong?