Inflation Now Back To Normal. Will It Matter?
Confidence has crept back up as inflation has cooled, but it remains much lower than it was the last time the economy looked as solid as it does today. That is true for both the University of Michigan’s confidence index and a separate measure produced by the Conference Board, an organization that conducts business and economic research.
Here’s a glimpse at what might be happening.
Consumers may focus more on price levels than price changes.
There’s a simple reason that many people still feel iffy about the economy: sticker shock.
Although prices are now climbing much more slowly, costs for necessities like groceries and housing are much higher today than they were a few years ago. Many households still feel that burn when they go to pay the bills.
By Jeanna Smialek, ‘New York Times’
American Consumers have been hounded by political operatives for the last 4 years touting how terrible inflation is and how ‘awful’ the economy is as a result. The reality is that unemployment has not been this low for this long in a half century and the stock market, a major tool for average American wealth generation, continues to reach stratospheric highs. The messaging has been effective in convincing the electorate that ‘times are tough’ and they are tough for some especially when factoring in grocery prices. But those prices would still be the same in an economy with triple or quadruple the current unemployment rate, then those grocery products woulds be completely out of reach for millions.
