Price increases have slowed, but getting used to new price levels could take time for consumers.
So just to clarify, we didn’t gain ground. All the shock of the inflation is still with us in ways that actually matters, like things are still crazy expensive, the only difference now is that things get more expensive… a little bit slower. But still vastly outpaces wage growth?
Inflation of 3% per year is lower than median wage growth; it’s generally considered somewhat desirable because it transfers wealth from lenders (who tend to be well-off) to borrowers (who are less so)
I don’t know why you’re getting down voted, inflation and wage growth are two different things. Inflation is around targeted levels, which is good. Wage growth still being low or suppressed isnt great, but a different matter.
Its true that getting inflation under control doesn’t fix high relative prices, but it does stop them from getting higher.
Its better then more inflation, but like i said, we are still in the lurch, i guess if we ignore all previous inflation then the fact we are breaking even is great news, for those that manage 3% growth in their wages per year. Historically wages are stagnant, and inflation must always climb or the pyramid collapses. Granted i am not versed in economic theory, but i base success in what i can afford per hour worked
Wages weren’t stagnant though.
The key thing is that right now, wages are rising at about 4% per year, while prices are rising at about 3% per year. That’s a good place to be.
I suppose you have a point, i may be confused with minimum wage, and my personal experience. The price hike on all goods seems to be independent from median wage
Yes, the federal minimum wage hasn’t risen; that’s static and requires an act of congress to change. What happened is that the pandemic also gave a lot of people negotiating power, so the wages most people earn went up more than prices.
Who is to blame? The US economy is a crazy complicated system with many free actors.
To think that it can all be distilled down to just the president is ridiculous. We don’t live in a centrally planned dictatorship.
The key thing is that it dropped down to around the long-term average of 3% per year. And did it quickly and without a recession. That combination is downright amazing.
