Like why can’t a head of lettuce go back to costing 1 cent?
Or, maybe more realistically, after dealing with crazy inflation for the last couple of years, why can’t prices just go back to pre-pandemic, pre-inflation levels, once the factors that *caused* the inflation in the first place have been resolved?
In: 5
Do all the factors ever resolve though? If a truck isn’t available to take a shipment across the country, it backs everything up. I don’t know the current state of transportation affairs but I remember seeing a video awhile back talk about how many ports are backed up as we recovered from the height of the pandemic.
Also, during the pandemic, many fleet vehicles and ships were sold. That means after the pandemic, there are less ships and vehicles for transport.
If you’re running a store selling something for $5, if the costs drop, that’s more profit you. If people continue to purchase that item for $5, there is no incentive to lower the prices. If prices are high elsewhere for other things, that’s more incentive for you to keep your prices high so you can better afford those things with your profits.
Lastly, lots of the prices drops you’ve seen is because of extra supply. Extra supply doesn’t exist for everything. If a government or industry has lots of supply, prices will drop when those get added to the markets. If the government isn’t stockpiling things like lettuce, then those prices will be controlled by whatever those in the lettuce supply chain want to charge.
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