Today, Explained Why stuff isn’t getting cheaper
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Apr 12, 2023 
Traci Alloway, co-host of the Odd Lots podcast at Bloomberg, and Jason Carrion, the Business news director at the New York Times, dive into the perplexing dynamics of inflation. They introduce 'excuseflation,' where companies justify price hikes as a strategic move rather than due to supply-and-demand issues. The discussion also covers 'premiumization,' revealing how brands manipulate perceived value to charge more, affecting lower-income households. Ultimately, they explore the broader implications of a two-track economy and rising inequality.
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Inflation 101
- Traditional inflation is caused by too much money chasing too few goods.
- Supply chain breakdowns, like those during the pandemic, also contribute.
Wingstop's Excuseflation
- Wingstop blamed increased chicken wing prices for raising their own prices.
- Despite wholesale prices dropping, Wingstop hasn't lowered theirs, highlighting excuseflation.
Monopoly-like Power
- Excuseflation allows companies to raise prices simultaneously, mimicking monopoly power.
- This reduces consumer choice and competitive pressure to lower prices.