Inflation Frustrates Consumers as New Normal Emerges of Higher Prices and Wages
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Prices across the board are higher than pre-pandemic levels. While inflation is slowing, prices are not declining much either.
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Consumers are frustrated and angry about higher prices, even though wage growth now outpaces inflation again.
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Broad price decreases are unlikely because companies have little incentive to lower prices and deflation can hurt the economy.
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Post-pandemic prices and wages are the new normal. Prices won't return to 2019 levels but many people's wages have increased.
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Despite frustrations with inflation, the job market is strong. More people have higher wages, even if it doesn't feel like it next to higher prices.