Inflation and price of goods - will prices go back down?

[Anonymous]

Most every item has increased in price by double the amount I paid pre-pandemic. These are inexpensive items that I could pick up at Target. My income has not doubled. How does this math add up? Will prices on goods every go back down?

[Anonymous]

Maybe a bit. I bought deodorant the other day and it was $10. Crazy!

[Anonymous]

Anonymous wrote:Maybe a bit. I bought deodorant the other day and it was $10. Crazy!

I just bought some last week. It was more than double what I remember it being.

[Anonymous]

I don't think any of the models predict deflation other than in a few specific categories such as cars where eventually you will see discounting below MSRP again. The best case scenario is disinflation where inflation slows for a period of years and prices are eventually where they would have been if inflation had stayed steady.

[Anonymous]

Very little, if any. Price increase, however, will either slowed or stopped.

[Anonymous]

Remember we had unusually low inflation for a long time post 2009. Trump goosing the economy with the TJCA when it was already starting to escalate ignited inflation which then was supercharged by the pandemic with supply issues and the effects of stimulus checks.
Ideally the Feds would have started raising interest rates pre-pandemic (2016-2019) when the heating economy signs were there, but they didn't--that was the big error on the part of the feds IMO. If we had done that, it would be a lot easier to navigate now where they have to work between inflation and recession with rapid interest rate increases--and now adding to that the impact of these rapid rises on banks.

The average US inflation rate post 1960 to present is 3.8%. The average inflation rate from 2008-present is around 2% (which includes the more recent higher levels of inflation)--so we've not been used to normal inflation levels. So prices aren't likely to universally "go back down" because we're at the desirable inflation rate of 2% over the past 15 years--but inflation growth will eventually plateau, and hopefully just keep a steady 2% annual increase so we won't have these quicker shocks.

[Anonymous]

No. Deflation is worse than inflation for the economy.

[Anonymous]

Every time I go to the grocery store, prices have increased again. Giant is selling breakfast cereal for $7 a box.

[Anonymous]

As someone who came of age in the eighties, no the prices do not return. They may flatten out out a bit, but a little inflation (3% say), is generally thought of as good.

[Anonymous]

It’s not even just goods, but services as well. I recently filed my taxes with Turbo Tax and was shocked that it was $178 for basic federal and state filing (Virginia). I went back and looked at years prior, it was $128 last year and $110 the year before that. Also my DD is starting soon at the preschool that my older DS attends and I noticed the application fee went from $100 to $125 in 2 years. The monthly tuition also went up slightly and they cut their operating hours down by a whole hour per day. Our lawn guy just quoted us nearly $600 for a spring cleanup of a very basic small yard that was $350 as of 2021.

I realize it’s just $25 here, a couple hundred bucks there, but you add it all up and I feel like we’re getting squeezed even with a decent HHI. Then add in things like $10 deodorant. I was going to buy a 4 pack of premade fruit and veggie smoothies my kids like, but noticed they were over $10 when they used to be about $7. I have no idea how people making less than us are managing.

[Anonymous]

Anonymous wrote:Every time I go to the grocery store, prices have increased again. Giant is selling breakfast cereal for $7 a box.

Same. I don’t understand how the vast majority people are able to pay these prices.

[Anonymous]

Eggs $8/dozen

And we have completely eliminated ordering food in and dining out at restaurants. It’s $50-$100 every time for the most basic things.

[Anonymous]

I spent 10 on destin diaper cream at Safeway yesterday. I said “what!” Out loud.

[Anonymous]

I also don't anticipate the prices to go down significantly unless we are in a full blown recession, which is unlikely. and yes, there is too much money in the market. It may take years to flush out

[Anonymous]

I’m a nanny and my wage with my regular job hasn’t increased at all ($29/hr in LA) but with new babysitting families now I charge $35-45/hr. That’s the only way I’ve been able to keep up, because I love my regular job, despite the low pay for this city. I’ve also cut out milk, yoghurt, and eggs because I just can’t afford it anymore. I make all my own meals and haven’t gone to a restaurant since 2019. I do meal prep and don’t waste anything. With my regular job and babysitting on the side, I make over $100k a year and I have to live like this. I refuse to dip into my savings, so things are tight because I send $500/week to savings and won’t stop - despite these crazy prices!