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Old 07-12-2023, 07:25 PM
Rainger99 Rainger99 is online now
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Quote:
Originally Posted by OrangeBlossomBaby View Post
So - here's how it works:

Widgets were invented 10 years ago, and were $1 each.

Last year, you needed a widget. Last year, widgets cost $9 each.

This year, the same widget is $3.

Yes - it's up from when it first came out on the market. But it's much less than it was last year.
I think your math is wrong. If an item cost $100 two years ago and went up 9% the first year, it would cost $109 in 2022. If inflation goes up 3% the next year, the price should be about $112.27. The price did not go down.

Sort of like compound interest!