Inflation may be slowing, but prices haven’t gone back down to where they were, so things don’t feel better than when inflation was high.
They never will. Lower inflation means that prices are rising at a slower rate now, but still rising. Prices going down would be deflation, which most economic theory says would be a complete disaster.
That is all true, but when it comes to how most people vote, it isn’t about sound economic theory, it’s about perceptions, expectations and emotions. Prices aren’t likely to drop back down to where they were 4-5 years ago. But even if they remain relatively stable, it will probably take some time for people to think of the current prices as normal and not inflated.
They never will. Lower inflation means that prices are rising at a slower rate now, but still rising. Prices going down would be deflation, which most economic theory says would be a complete disaster.
That is all true, but when it comes to how most people vote, it isn’t about sound economic theory, it’s about perceptions, expectations and emotions. Prices aren’t likely to drop back down to where they were 4-5 years ago. But even if they remain relatively stable, it will probably take some time for people to think of the current prices as normal and not inflated.
The only way forward is to raise wages to match the new prices. And then hopefully try to prevent undue inflation in the future