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
They never go down unless there is a period of deflation.
The higher prices just become the new standard. Now, instead of a dinner costing 12$ it’s more like 16-17$, and you have to rectify that with how you get your income.
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