Who wouldn’t like prices to start falling? Careful what you wish for, economists say

By PAUL WISEMAN
AP Economics Writer

WASHINGTON (AP) — Many Americans are in a sour mood about the economy for one main reason: Prices feel too high. Maybe they’re not rising as fast as they had been, but average prices are still painfully above where they were before the pandemic. And they’re mostly heading higher still. Wouldn’t it be great if prices actually fell — what economists call deflation? Who wouldn’t want to fire up a time machine and return to the days before the economy rocketed out of the pandemic recession and sent prices soaring? Many economists caution that consumers should be careful what they wish for. Falling prices across the economy would actually be an unhealthy sign.