Quote:
Originally Posted by opendoor
Who said deflation would occur? Reduced demand and increased supply can lead to significant price drops in many sectors while there is still (relatively modest) inflation occurring in the aggregate. We see it all the time with commodities, and we've seen it with food, where many staples cost less in the 2015-2020 period than they did in the decade prior. You need some sectors to become cheaper or stay flat over time to account for the things that go up in price more dramatically if you're going to have modest inflation.
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Prices are very sticky. Only certain very specific commodities experience price drops.
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