In theory, inflation should self-correct. That is when the price of goods and services get too high; sales drop off to a point where the supply-demand cycle gets back in balance. But in the real world, inflation gets sticky because there are some goods and services, like food and gasoline, that consumers can’t avoid.
To illustrate this, the USDA’s Economic Research Service has projected overall food prices to rise 3.6% in 2026. That’s above the 20-year historical average and well above the Federal Reserve’s target rate of 2%.
