Inflation here? gas/grocery prices just continue to climb

DaveXA said

I'm not sure that's possible. Wages aren't growing at a rate that would replace the lost purchasing power. If wages do bump up enough to outpace inflation, then you'll see inflation trending higher again. I think some temporary deflation will be necessary to return to something close to equilibrium compared to the normal relationship in recent decades.

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Deflation is almost always correlated with recessions, and that usually leads to higher unemployment and lower wages. Not that I think we should pretend that we can orchestrate this sort of thing perfectly (or even at all). Typically though it's much harder to see any sort of economic growth in deflationary environments, and companies typically cut wages then.

It's typically easier to maintain lower unemployment (which leads to wage growth) when there is inflation under the target (of 3%).