Can inflation actually be fixed? Is there any hope? Or will prices just gradually keep increasing?
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If prices start dropping, people will stop buying – why buy something for $5 today when it will be $3 tomorrow? It’s a nasty cycle
Latest inflation estimate in the USA is 3%, versus 9% a year ago.
And, the 3% we see today is attributed to shelter and vehicle services costs.
Excluding shelter, some think inflation is below 1.5% and this is the reason the federal reserve had slowed their interest rate hikes, with maybe the last hike in rates coming this Thursday
As others have said, the government seeks to keep prices rising, slowly, at about 2% to 2.5% per year, so that the economy is growing and not stagnating
A steady, controlled amount of inflation is considered economically healthy because it encourages spending and investment rather than hoarding.
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