eli5: Since inflation pushes the price of items up every year, does that mean we’re eventually going to get to a point where it’s normal to pay like $20 for a carton of milk?

Question

eli5: Since inflation pushes the price of items up every year, does that mean we’re eventually going to get to a point where it’s normal to pay like $20 for a carton of milk?

In: Economics

Answer 1

Yes. The prices we have now would be insane 50 years ago, and the prices they had back then were ridiculously low compared to what we have now. As long as inflation exists, which is a good thing for a capitalist economy as long as it’s low, this trend will continue forever.