Will prices go down eventually? I'm sceptical.

[GoodnightRain]

I don't understand how everything works if I'm honest, so my question is will prices of food, fuel, energy and houses go back down eventually? And if prices do go down will places, who have had to increase costs due to rising costs, come back down again too? For example days out, childcare and holidays.

I am worried that companies will take advantage of the fact that, by the time prices may be able to go down, that everyone would have adapted and got used to struggling by then and will just keep prices as they are, if that makes any sense? I just can't imagine prices coming down again even if the reasons behind the rising costs resolves. Perhaps I'm being naive or overly sceptical. Are there examples of this sort of thing happening in the past and prices coming back down again or are we in unchartered territory?

It's fascinating. We operate a debt-based economy. Crash is inevitable. positivemoney.org/2011/12/debt-based-monetary-system-world-debt/

Petrol prices have just fallen by about 2p per litre in my area. Everything is very volatile with the war in Ukraine having massive effects on food supplies and restrictions on Russian oil and gas is driving up fuel prices. I’m not sure we can predict anything right now as prices depend on supply and demand and who knows, we could be at war next year. 🙁

They will not go back down to where they were. They never do. There may be occasional blips, but higher prices are here to stay.

So, I think costs will go down but I don't think it will be any time soon not will feel very significant. I think the rate of inflation will return to normal over the next year or so and then we are counting on rises in wages (and I suppose, inflation tethered benefits) to slowly (so not as to reignite inflation) decrease the gap.

I don't think we will be at war next year, with who? Russia? As if. If we see an escalation it will be an economic one if it turns off the gas to European countries over winter.

@FourTeaFallOut that makes sense, thank you.

No they won’t go down. I’m old enough to remember petrol at pence (yes pennies!) per gallon, through to pennies per litre (like 9p per litre of diesel) It’s now pounds per litre. Yes there are fluctuations, but not by a great deal.
Households adapt and wages creep up, given time and a ‘stable’ trading base things settle. No one has a crystal ball as to how the future will go, but if you look back at our economy, it’s basically a roller coaster of economic cycles. Unless something major happens, that’s the cycle our economy will likely stick too.

OP, it looks like the first scenario is what is most likely.
possible futures

I think energy prices could go down, as the cap is regulated. The government could decide they want to reduce the price cap when the wholesale costs reduce, and the energy companies have to follow that. I don’t think there’s much chance of anything else falling in price very significantly.

I highly doubt prices would go down in a meaningful way. I predict further increases. This in only my opinion.

No, they won’t go down. People get used to these prices, then they creep up again.
I have not had a pay rise so it’s a struggle.