If people generally perceive that 1) They will not earn more money in the future to offset the price increases. and 2) Their savings will outpace inflation.

If people generally perceive that 1) They will not earn more money in the future to offset the price increases. and 2) Their savings will outpace inflation. Then they will react to inflation by saving more and deferring consumption. In order for this to change, saving/investment must generally be a bad deal for the average consumer - or they have to have the expectation that future earnings growth will offset inflation. After 50 years of flat wages, it should be unsurprising that the average consumer does not believe 1 will be true.