4 ms·
You're right, but it's going to take either a while or actively lower prices before people will stop feeling like everything is more expensive than it should be
by prottog 4y ago
You're right, but it's going to take either a while or actively lower prices before people will stop feeling like everything is more expensive than it should be. Psychology matters for the effects of inflation on the macro economy.
I've definitely altered my purchasing behavior because things "feel" too expensive, and a few months of 0% MoM inflation isn't going to change that. Either in two years I'm going to finally get used to a cart of groceries costing $250, or prices come down sooner.