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.
Inflation is a decline in the value of money in relation to the goods that it can buy and is a pervasive economic phenomenon. It is so pervasive that it is very difficult to compare this year s prices to last year s, much less compare prices over decades. Here is a graph of the buying power of $1.00 since 1938: