It's more about people holding out on buying things because they believe it will be cheaper later. Food is a bad example because people will always buy food, regardless of the cost. But why would you buy a car if it might be $2,000 cheaper in a few months? Then a few months pass and now it looks like that car might be even cheaper, will you spend now or keep holding out to see if it goes lower?
It's such a bad system when the logic follows the other path too. "I should buy a car now because it's only likely to get more expensive, while my income stagnates"
Instead of a car, think of a house. If you buy a house now, you want the value of the house to increase or stay the same. You don't want the value of your house to lose 50% of its value after 10 years.
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u/Terpcheeserosin 8h ago
So things don't cost less
But money can buy more?
So right now eggs are 10$ a pack
After deflation
You can buy 2 for 10 dollars because "money can buy more"
How is that not also, "eggs cost less" ?