It's not the price that makes people buy less, it's the expectation that things will be cheaper in the future. If you know that an expensive item will cost less next year, then you will hold on to your money which is bad for the overall economy. On the other hand, if you know that the price will increase due inflation, then you are more likely to spend your money today which is good for the economy. That's the basics of it at least. The sweet spot is a low level of positive inflation that keeps the market active without driving a spending frenzy, the kind that occurs when you expect your money soon to be worthless due to massive inflation and which generally leads to even higher inflation.
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u/Grouchy_Theme1461 9h ago
bruh u gotta explain it