I probably should be happy about this, but I really don’t care. This seems like something that’s more important to experts and academics. Regardless of what the official indicators say, something just doesn’t seem right to me. I can’t necessarily quantify it or express it through some equation, something just feels…wrong.
It’s because this is a manufactured inflation (imo) that companies have created by greedy price gouging.
To imply that we should be rejoicing at the fact that companies are starting to drop prices slightly (even though the average person is struggling to afford GROCERIES) is quite frankly, disgusting.
No, we should be taking this as what it is: the world’s smallest W. Take it, have a beer or a smoke if you’ve got them, and go back to being angry tomorrow.
There’s recent research showing that may not be the case entirely, though that’s not to say price gouging isn’t happening in places.
Corporate price gouging has not been a primary driver of U.S. inflation, according to research published on Monday by economists at the Federal Reserve Bank of San Francisco.
While markups for motor vehicles and petroleum products did rise sharply during the 2021-2022 inflation surge, markups across the entire spectrum of U.S. goods and services have been relatively flat during the post-pandemic recovery, the bank’s latest Economic Letter showed.
“As such, rising markups have not been a main driver of the recent surge and subsequent decline in inflation during the current recovery,” wrote the bank’s research chief Sylvain Leduc and colleagues Huiyu Li and Zheng Liu.
Why are you being downvoted? Is there something I’m missing with the generally accepted reliability of the source or the methodology in the research?
The source reporting on the study should lend itself to the veracity of the information. I think there’s a bit of shooting the messenger going on. I trust Reuters as a reliable source of information, and if the study were lacking I feel it would be noted. The study was published in May, so I would hope if there were holes in the report they would have surfaced by now.
This is like compulsive gambler logic - 48 losses in a row followed by 1 win - “Woohoo! I’m on a winning streak now!”
That’s kind of just how trends work. Economics indicators tend to lag, as it takes time for supply chains to adjust to conditions and changes.
Deflation is actually not a desirable thing anyway, so this isn’t actually necessarily a win. But I’ll take it anyway.
One month is not a “trend.”
It represents a break in the previous trend.
No, but the few years of inflation was. Now that trend is changing.
Or it’s noise.
