– What would it take for prices of things like food to decrease back to something affordable?

Question

For context – I just saw a post that said for the first time since 2020 McDonald’s hasn’t made as much money or something, and their prices have increased 40% since 2019. – if big companies start losing profit because people chose to not spend their money there because they can’t afford it, Would prices ever go back down?

In: Economics

Answer 1

Since other people have answered the inflation/deflation part of the question. I’d also like to add that McDonalds is not losing money, their sales declined(1%) for the first time since 2020, but they’re still currently more profitable than they’ve ever been per their last earning call in terms of Earnings per share.