What happens to prices after a period of inflation ends?

Question

During a period of inflation prices rise or manufacturers adjust amounts of product consumers get for their money with “shrinkflation”.

After that period ends what happens to prices? Do they drop or do they just continue to increase at a rate closer to the “normal” rate of inflation and never really go back down?

In: 1

Answer 1

Very rarely deflation. There’s almost always some inflation over the course of a year. A slight amount of inflation is a actually healthy sign.