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Frank Loomer's avatar

Remember JL, pandemic supply chain inflation was global. Shortages simply drive up prices, this of course is old fashioned marketplace, found everywhere on this planet. With things more settled, inflation is now generally in the 3% range. Unemployment is overall 3-4%, about as close to "full employment" as you can get, with real wages edging ahead of inflation the past year or so.

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Ned McDoodle's avatar

Fantastic point. This type of inflation -- for example, for construction materials -- is often high but localized in coastal areas whacked by massive hurricanes.

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Jim Young Freeport, ME's avatar

Also Insurance rates (if they can find any).

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J L Graham's avatar

Classic inflation was a factor, but it seems to me that corporations are increasingly gaming the system. Take some of the screw-ups that we were in the news post the pandemic due to staff shortages, not (from what I have read) because new hires were not available, but because companies wanted to accept increased business without adding staff. Shrinkflation pre-dates the pandemic, but has been on a roll since. And in my experience, at least overall, prices have not come down as better equilibrium has been established even if the rate of price rise has dropped. Also, I strongly suspect "real wages" figure is pretty unevenly shared in the real world. I am not net better off financially tha pre-pandemic, but I'm retired. I suspect a good many full time workers are in the same boat.

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Frank Loomer's avatar

Here's something from Forbes....Of course real wage increases are unevenly shared. I have no theory of how modern capitalism works other than to think oligopolies and monopolies tend to set things more to their advantage than otherwise. btw they've been around a long time. If i also hear you rightly, global pandemic inflation was a giant corporate conspiracy, right? https://www.forbes.com/sites/johngoodman/2024/08/30/the-greed-theory-of-inflation/

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