Nearly two thirds of the population think that if inflation is halved, the price of goods will go down

[MereDintofPandiculation]

AIBU to think this means that we need to get a lot better at teaching maths?

Source: Survation poll quoted in Guardian

Inflation isn’t just based on the prices of goods, though. It’s heavily influenced by things like mortgage costs. So it’s possible that if inflation were halved and the remaining amount was accounted for by things which aren’t goods, the prices of goods might indeed reduce. It’s always more complicated.

It’ll only go down with deflation…. It’s not rocket science

I can't believe I missed this thread.

I wonder if people will be disappointed if they don't see prices falling if inflation is supposed to go down - if that's their assumption.

I suppose it's looking back at a year ago - and that can be a long time for people to look back - the more immediate prices and their reduction might make people think it's going down - if prices do fall at all.

So it might have been £1 in Dec 22, £1.20 in June 23 and £1.10 in Dec 23. So 10p more expensive than a year ago but 10p less 6 months later. Which price gets remembered and has the psychological impact?