At the same time, demand for some products soared: pandemic-era stimulus programs left shoppers with extra cash to spend, and everyone wanted to buy the same types of things. More recently, inflation has been driven mostly by the cost of buying or renting a home. This is due to entirely different reasons, mainly that new homebuilding has been slow and older Americans are not moving out of their homes as frequently. Inflation has slowed since its peak, but that only means prices aren’t rising as quickly as before. The chance that prices actually fall are very slim, although we have seen price declines in products likes eggs and used cars. Still, the U.S. has made great progress. Reining in inflation has not led to a recession and widespread job loss. Cooling inflation, while keeping unemployment at historically low levels, has been the ideal scenario, or what economists like to call a “soft landing.”
The format of this article is to help readers understand why inflation is bad by showing the different contribution factors.