Get Ready for More Coronavirus Disinflation, at Least in the Short Run

Online inflation as measured by the MIT Billion Prices Project/PriceStats, which tracks prices in real time on a daily basis on websites such as, has continued to fall throughout the month of May, even going slightly negative (implying some deflation). How can such disinflation be possible, given that the Federal Reserve has expanded its balance sheet by trillions of dollars over just the past few weeks, and that the coronavirus has distorted global supply chains, causing shortages?

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