Post by the Scribe on Dec 17, 2023 8:49:05 GMT
Inflation has cooled a lot. So why do things still feel so expensive?
www.npr.org/2023/12/16/1219574403/economy-inflation-prices-wages-disinflation-deflation-interest-rates?ft=nprml&f=191676894
DECEMBER 16, 20236:00 AM ET
HEARD ON WEEKEND EDITION SATURDAY
Scott Horsley
4-Minute Listen ondemand.npr.org/anon.npr-mp3/npr/wesat/2023/12/20231216_wesat_inflation_has_cooled_a_lot_so_why_do_things_still_feel_so_expensive.mp3?d=255&size=4096045&e=1219574403&t=progseg&seg=13&p=7&sc=siteplayer&aw_0_1st.playerid=siteplayer
Transcript
Inflation has cooled significantly in recent months, yet many people are still paying more for a lot of things. That's because easing inflation doesn't actually mean prices are falling — it just means prices are rising more slowly. And that's a good thing for the economy.
Scott Olson/Getty Images
Inflation has cooled significantly in recent months — but you may still find yourself paying more at the grocery store or the doctor's office than before the pandemic.
It's a big reason why people are unhappy about the economy, as this recent Gallup poll revealed, even if by many measures the economy is actually doing quite well.
Inflation continues to moderate thanks to a big drop in gas prices
BUSINESS
www.npr.org/2023/12/12/1218660706/economy-inflation-consumer-prices-interest-rates-federal-reserve-recession
The Fed is probably done raising interest rates and could cut them next year
ECONOMY
www.npr.org/2023/12/13/1219034864/federal-reserve-interest-rates-inflation-consumer-prices-economy-recession
So what does it actually mean when inflation is easing?
Simply put, falling inflation, or "disinflation," means prices are rising more slowly than they had been. That's a good thing. Grocery prices have climbed less than 2% in the last 12 months, compared to a 12% jump the previous year, which gave many people sticker shock at the supermarket.
What many people want to see, however, is "deflation," when prices actually come down. Falling prices are not generally good for the economy, though.
more
www.npr.org/2023/12/16/1219574403/economy-inflation-prices-wages-disinflation-deflation-interest-rates?ft=nprml&f=191676894
DECEMBER 16, 20236:00 AM ET
HEARD ON WEEKEND EDITION SATURDAY
Scott Horsley
4-Minute Listen ondemand.npr.org/anon.npr-mp3/npr/wesat/2023/12/20231216_wesat_inflation_has_cooled_a_lot_so_why_do_things_still_feel_so_expensive.mp3?d=255&size=4096045&e=1219574403&t=progseg&seg=13&p=7&sc=siteplayer&aw_0_1st.playerid=siteplayer
Transcript
Inflation has cooled significantly in recent months, yet many people are still paying more for a lot of things. That's because easing inflation doesn't actually mean prices are falling — it just means prices are rising more slowly. And that's a good thing for the economy.
Scott Olson/Getty Images
Inflation has cooled significantly in recent months — but you may still find yourself paying more at the grocery store or the doctor's office than before the pandemic.
It's a big reason why people are unhappy about the economy, as this recent Gallup poll revealed, even if by many measures the economy is actually doing quite well.
Inflation continues to moderate thanks to a big drop in gas prices
BUSINESS
www.npr.org/2023/12/12/1218660706/economy-inflation-consumer-prices-interest-rates-federal-reserve-recession
The Fed is probably done raising interest rates and could cut them next year
ECONOMY
www.npr.org/2023/12/13/1219034864/federal-reserve-interest-rates-inflation-consumer-prices-economy-recession
So what does it actually mean when inflation is easing?
Simply put, falling inflation, or "disinflation," means prices are rising more slowly than they had been. That's a good thing. Grocery prices have climbed less than 2% in the last 12 months, compared to a 12% jump the previous year, which gave many people sticker shock at the supermarket.
What many people want to see, however, is "deflation," when prices actually come down. Falling prices are not generally good for the economy, though.
more