this post was submitted on 16 Aug 2023
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UK Politics

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Of course, inflation going down doesn’t mean prices are coming down; life is still getting more expensive, just at a slightly lower rate…

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[–] [email protected] 1 points 1 year ago* (last edited 1 year ago) (1 children)

Firstly, inflation decreasing is a decrease in the rate of increase so it's never going to ease your cost of living. Your cost of living is still going up, just not as fast. Inflation is the derivative of the cost of living - the rate of change. (Similarly, the deficit is not the debt, the national deficit is the rate of change so a decrease in the deficit means that borrowing is still going up, just not as fast).

Inflation literally is "too much money chasing too few goods". Price gouging can only happen when there's not enough supply of something compared to the amount of people willing to pay for it. If there were more rental properties available than there were tenants looking to rent, then a landlord can't just go "I think I'll just double my rent to make more money" because no one would rent their property as there are others available. If on the other hand there are more tenants than there are properties (too much money chasing too few goods) a landlord can increase prices.

[–] [email protected] 1 points 1 year ago

Except a lot of the inflation in the UK is due increased cost of the supply. They "literally" cannot afford to sell it cheaper.