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

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[quote=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.[/quote]

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