“while inflation is down, prices are still high, and i think consumers have gotten to the point where they’re just not accepting it,” tom barkin, president of the federal reserve bank of richmond, said last week at a conference of business economists. Planet money looks into why feelings about prices diverge so much from official inflation. Here are five areas where households are feeling the pinch. The fact is that prices are not going to fall to pre- inflation levels – nor would that be a good signal for the economy. Here’s why everyday costs remain stubbornly high, and what it means for your wallet. · the inflation problem is largely solved, but the price problem remains – making many feel that things are no longer affordable. · although inflation has eased, many americans say they still feel squeezed financially. · inflation is down since its peak during the pandemic, but the feeling of sticker shock still lingers. Creating an answer for you using ai. · inflation may be easing in 2025, but prices still feel sky-high. You should not rely on this feature for medical, financial, or legal advice. · many economists believe if people think inflation will be higher in the future, theyll run out and buy stuff sooner to beat the price hikes, which boosts demand and pushes up prices. Ai-generated content may sometimes contain inaccurate, incomplete, or biased information, so make sure you do additional research. · 2025 is shaping up to be the year of underconsumption or “no buy ” trends, as americans express their fatigue with inflation , consumerism, and threats of tariff-related price hikes.

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