Wondering when we will see a drop in the inflated prices we are paying? Well we found the following excerpts from an article written by Trina Paul for 'Personal Finance' to be very insightful...
"It’s no secret that everything from groceries and gas, to airline tickets and rent is more expensive than it used to be, and many Americans are left wondering when prices will go back to “normal.”
"The short answer is that it largely relies on a variety of factors influencing today’s record-high inflation — post-pandemic consumer demand, ongoing supply chain shortages, geopolitical events, the war in Ukraine — and there are various viewpoints on how most of these factors will unfold."
"Here’s what the experts say about when prices may level out. Pinpointing how soon prices will go down again entails estimating large-scale contributors, such as when global supply chain issues will be resolved and when the Federal Reserve’s interest rate hikes will slow the economy enough to lower inflation. For this reason, and because think tanks, research organizations and economists use varying reasoning, it’s difficult to give a clear answer."
"Some, like Alan Blinder, professor of economics and public affairs at Princeton and former vice chairman of the Fed, suggest that inflation will not last for years. “One day, hopefully soon, food and energy prices will level off and the supply chain problems will dissipate,” Binder writes in a recent Wall Street Journal op-ed. When that happens, says Binder, ”...inflation will fall as quickly and dramatically as it rose. We’ve seen it happen before. In other words, prices could drop all of a sudden. Blinder also adds that raising interest rates won’t be the end-all solution to lowering inflation."
"So consumers can expect that this year will be the worst for inflation, with prices estimated to go down by 2023, according to the latest Morningstar." research.
With that being said, the message is clear, for the foreseeable future it is important to find resources where you can get the most value for your money on the products and services you need everyday!