EatMoreSalmon said:Waco1947 said:
Prices are still high, but Trump would have been better served if he honest about it. Biden had the same problem. Both talked about macroeconomics, not microeconomics, and kitchen table prices.
As of February 2026, U.S. inflation has cooled to 2.4% annually, down from previous highs, but consumer prices remain high because this figure represents a slower rate of increase, not a price reduction. High costs for housing, food, and services persist, as cumulative price increases from recent years are locked in, requiring higher incomes to maintain the same standard of living.YouTube +4
Here is why prices remain high despite lower inflation:Essentially, inflation has eased, but the new, higher baseline for consumer goods is not reversing.
- Disinflation vs. Deflation: Inflation measures the rate of change. A 2.4% rate means prices are still rising, just more slowly than when inflation was 14.6% or, more recently, near 7%.
- Cumulative Impact: Prices are not falling back to pre-2020 levels. A 2.4% increase is added to a base price that already rose significantly over the past three years.
- Stiffening Costs in Specific Sectors: While some goods have leveled off, sectors like shelter (housing) and services are still seeing significant price increases.
- Wage and Supply Pressures: Companies are still adjusting to higher labor and operational costs, and persistent supply chain issues or new tariffs can cause specific goods to remain expensive.
NerdWallet +6
This is a disingenuous presentation. You don't want deflation. That is depression territory. Low inflation is what you want as long as money is backed by the strength of the country and not precious metals. Once inflation has hit, you are not going back to past prices. Wage growth is what will offset inflation in this system. The higher the rate of inflation, the more difficult it is for wages to keep up (like in 2021-2024.)
No argument from me. I agree