February 13th, 2024
Marketplace recently published a podcast featuring Tal Gross, Associate Professor of Markets, Public Policy, and Law, discussing inflation rates increasing, particularly for baby food and formula.
For some items, regardless of price changes, consumers continue to purchase essential items because of limited immediate alternatives. To afford these items, consumers often make small adjustments to their spending habits.
“Maybe you’ll drive a little bit less. Maybe you’ll switch to the cheaper gasoline. But there’s not much you can do in the short run,” Gross adds.
Elevated prices of essential products can still negatively impact perceptions of the economy.
