Comment on corporate America just posted record profits this week. The stock market is at all time highs. If your paycheck didn't do the exact same thing, take a wild guess why. Their record margins are literal…

<- View Parent
mechoman444@lemmy.world ⁨3⁩ ⁨days⁩ ago

So I don’t like dealing with “trust me bro” arguments but I think you’re confusing what inflation actually is.

Current U.S. Inflation Rates: 2000-2026 share.google/KYoH4YRuDcDl8tJje

But here’s an official link to what the inflation rate is and was.

The reason you’re feeling like things are significantly more expensive despite the relatively small inflation rate is that inflation works somewhat like compound interest.

For example, if a product cost $100 in 2025 and inflation was 5%, the price would rise to $105. If inflation is then 2.3% in 2026, that 2.3% increase is applied to the $105 not the original $100. The new price would be about $107.42.

That’s why a lower inflation rate doesn’t mean prices are going back down. It simply means they’re increasing at a slower rate.

Prices generally don’t go down just because inflation falls. They go up more slowly. The notable exceptions are things like gasoline and hand grenades.

source
Sort:hotnewtop