The Psychology of Inflation

There's a psychological expectation that companies, that inflation exists and therefore companies can increase their prices. So why is the market not working here? Because you would expect if one company increases its prices, another company will see an opportunity and reduce its prices. Why is that not happening? That is there. There's a phrase that's more often used in commodity markets than supermarkets, but it says the cure for high prices is high prices. And that will eventually be true in that the consumer does eventually rebel against high prices and seek them, seek lower prices or just stop buying certain things. But with a lot of this inflation being in food, that's not something people can decide to stop buying as