Together these molecules form a liquid. However, taken as separate molecules both of these are gases. The argument is that since together these molecules form the liquid water that separately they must be a liquid as well. The fallacy of division is also the opposite of the fallacy of composition.
See also consumer price index, core inflation, cost-push inflation, demand-pull inflation, GDP deflator, producer price index, purchasing power risk. Inflation. Inflation is a persistent increase in prices, often triggered when demand for goods is greater than the available supply or when unemployment is low and workers can command higher salaries. Moderate inflation typically accompanies economic growth.
What is 'Inflation Targeting'. Inflation targeting is a central banking policy that revolves around meeting preset, publicly displayed targets for the annual rate of inflation. The benchmark used for inflation targeting is typically a price index of a basket of consumer goods, such as the Consumer Price Index (CPI) in the United States.