2 The use of debit cards has grown strongly, and the number of checks being converted into ACH payments has grown to nearly 3 billion annually. Electronic check clearing has begun to grow exponentially in response to changes in check law.
Thus, the mechanism in which the rise in observed inflation alters people’s inflation outlook and behavior, which in turn raises observed inflation, continues to operate. This means that people’s inflation expectations will likely follow an uptrend and inflationary pressure from the rise in inflation expectations will also increase. III.