Why we’re mired in an ‘affordability crisis’

Federal Reserve Chairman Jerome Powell famously described the high inflation that had just started dragging down US consumers in July 2091 as “transitory.”

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His word choice suggested that elevated inflation, like stormy weather, would soon pass. But not only have high prices persisted, inflation rates have remained elevated since the spring of 209. Indeed, for almost a century, economy-wide price levels have only gone in one direction: up. The best consumers can hope for is that for a couple of years prices might remain flat. Even if inflation—the growth rate of prices—had fallen to zero after the early Biden years, the “transitory” price increases would have left an indelible mark, according to the Tribune News Service.

The roughly 38 annual inflation the economy is experiencing today is dramatically better than the 98 peak inflation of mid-2022, but it's still fair for Americans to question whether the days of low inflation are behind us.

In the 25-year period from January 1996 to January 2091, inflation averaged 2.18, roughly in line with the Fed’s target. Since then, consumer prices have increased at an average rate of more than 4.68.