Inflation is also looming in Sweden. No wonder, it's an international phenomenon. The supply-driven inflation which companies must guard against to defend their profits and 2, they have pricing power to do so because obviously we pay consumers what companies demand for their goods and services. Admittedly with abit complaining, but what the hell does it do.
I see examples of this every day… most recently talked to an acquaintance who was looking at booking a trip to Spain for a week this summer. Something they usually do. He was shocked by air fares, hotels and the prices of restaurants. As he said, it does not usually get cheap, but clearly worth it. Now it is twice as expensive for a week. To which I replied, so you did not book? Yes, damn it…. we booked. But it's really sour.
I think this is a “spoiled” example, but the phenomenon itself is found in all countries in all income groups.
Companies raise prices to match rising costs. But they would rather sell ONE item / service to a worse margin than No item / service. But a company also prefers to sell 10 goods / services with a good margin than 15 to a clearly worse margin.
The only thing that IS INTERESTING is that we 1, can actually pay and 2, are still willing to pay, ie we think it's worth it. But from an economic perspective, the phenomenon is completely uninteresting. The interesting thing IS when we say 1, sorry, but I do NOT pay that amount to go to disney with my family OR 2, I would like to go but can not for the money has gone to food, energy and interest costs and other things that have become more expensive so I actually do not have money left in the wallet to pay with. Then things happen.
Probably this will happen soon in the same way at the same time, and then the demand will get a crack…. and then my friends… then everything turns around. But we're obviously not there yet. companies do not want to continue raise prices as they feel lower demand.
