The Paradox of Cooling Inflation: Why Do Prices Remain High?

Despite inflation cooling down, prices are still rising, leading to dissatisfaction among consumers. Easing inflation means prices are rising more slowly, not falling. Deflation, or falling prices, is generally not good for the economy as it can indicate economic distress. The Federal Reserve prefers rising prices at a moderate pace. While some prices have fallen, overall prices are still rising. Rising wages may help alleviate the impact of inflation on consumers.