It is my opinion that inflation has become self-fulfilling.
That is prices are rising, especially at restaurants, at a faster rate than justified by inflation. The same is true for gasoline where local stations are charging prices not reflective of current oil prices. Look at your local stations and you may find per gallon variations near a dollar among stations only a mile or so apart.
Yesterday my wife and I had breakfast at a small cafe we have visited for decades. We each had an omelet, coffee and English muffin. The bill was $37.00. In addition, this restaurant along with most others charges an extra 3+% if you use a credit card. In effect, they are making up most of inflation by that charge alone which I doubt will be eliminated in the future.
Crude oil prices have been coming down the last year.
Consumers accept these prices because they have a mindset developed during high inflation. Now inflation is a bit over 4%, still a bit high, but not near last year.
QUINNSCOMMENTARY 
Is that 3% for using the credit card or other service charges even if paying with cash? A pizza place around me just started charging $1 on all credit card charges to cover some of the swipe fees. I do not have to pay it if I pay cash. During the pandemic, I switched to all credit card purchases because it didn’t cost anything and I got between 1% to 3% cash back on my card. Where do you think that money is coming but from swipe fees. In some places there is a cash price and a credit price for gasoline too.
I think another thing to remember is besides inflation between 2019 and 2023 is 19%, that many states increased the minimum wage at the first of the year for the past several years. Add to the supposed labor shortage issues, everybody has been paying more for labor which is probably adding to the costs in service related industries where I have seen the highest price increases and cut backs.
The raising of wages will continue to cause inflation too.
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We live in a debt economy. Interest rate increases plus inflation equals higher prices. Wages are up, wholesale prices for business are up, energy, insurance, rents, you name it up, up, up.
The one thing that many learned during COVID, is how much spending at restaurants, movies, concerts, nascar and vacations are not necessary spending.
I almost never eat outside the home, unless I am away. Even then most times my wife and I share a meal, as they pile the plates high, so they can charge $20 plus for each meal. Plenty of food to share and money to save.
The quality of food and service varies so much that sometimes I skip the restaurant and hit up Albertsons / Safeway for their $10.99 chicken meal deal, and head back to the hotel.
Plus there was a big exit from foodservice during COVID as those workers saw better pay and hours at other jobs. That did not require contact with as many people, lowering your chances of getting sick.
My wife and I have yet to get the COVID bug, maybe one more plus to living in Montana, way less people, less chance of getting sick from others. I do believe that getting away from shaking everyone’s hand, and passing those germs around has been one of the biggest factors in illness transmission reduction.
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A lot of restaurants here in the Chicago area charge that 3%. Where does that money go? To the kitchen staff, more servers, or the owners ? Probably the latter!
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You are exactly correct. I get even more incensed when I read right wing garbage that ‘Biden has given us runaway gas prices, high inflation etc’ The truth is as you say oil prices have fallen from last year the inflation is self fulfilling and to your point I don’t know that adding the three percent is even legal. Aargh!
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That so-called “garbage” is mostly true. The money put into the system from the Rescue Plan accelerated inflation.
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Since Jan 2020 the government with the help of the FED Banksters have added 6.7 Trillion to the money supply. That is the real cause of inflation. As a retiree I can’t wait for a
deflationary cycle coming with the next recession.
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