Prices didn’t go back down.
That’s deflation, and is actually really bad for society and the economy overall.
Honestly, more workers need to unionise and restore wages to where they should be (pegging back to rates in the 80s - 90s), minimum wage should be closer $25/hr.
If real wages continue to rise higher than CPI for blue/white collar workers, rather than the capital class - things would be a lot better overall.
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one of the really big problems with deflation in a system like the one we currently have is that there is no way to set a “negative” interest rate, at least trivially. So if something spicy happens, and you spiral down to a really aggressive negative interest rate, everything explodes instantly.
This is actually why we target a 2-3% interest rate, and in the times of financial struggle (globally) use it to create new money in order to stimulate an economy, which in turn raises inflation significantly, but beats another literal depression.
The primary difference between the great depression is that covid was significantly worse, and that modern monetary policy is incredibly resilient compared to back then.
you could theoretically have a system with deflation, but then the problem is that you have very little money moving through the market, and arguably you will move away from a currency based market, to a goods based market instead, which is quite literally a bad thing.
Japan has had deflation for 25 years and the zombies haven’t shown up yet. In fact it’s a really nice place.
Turns out deflation isn’t so horrible if it’s only moderate, kind of like inflation.
News flash, most Americans were paycheck to paycheck before inflation, too.
“I’ve turned off the oven, yet food is still burnt”
If you really want to compare that to inflation slowing, then you haven’t turned off the oven, you just slowed down the rate that you are making it hotter.
They’ll keep waiting too. Because without some shock therapy like raising min wage to like $25 an hour overnight and taking that economic hit it’s never going to get any better. This is the new normal until that happens.
“inflation has slowed, but prices are still high? Why is that?”
literally the title of this thread/article
Man i sure wonder why my rate of increase % lowering hasn’t done much to change the value that it’s cumulatively adding on top of…
You guys are getting pay checks?
We were living paycheck to paycheck before that inflation boom too.
But it’s also because inflation is a measurement of velocity, not a static indicator. If you have a year with ten percent inflation, that doesn’t go away without deflation happening and the finance industry would rather nuke the stock exchange than allow deflation.
I mean yeah, lower inflation doesn’t mean prices go back down, and wages didn’t inflate for most people.
CNBC can fuck all the way off with that brain dead journalism.
Inflation is still happening just slower. So things are still getting more expensive and wages are not following. It’s not rocket science unless the guy funding your research specifically asks you to never recommend any solutions that don’t make rich people richer.
They were doing that too begin with though?
