Inflation cooled, so why didn't prices come down?

Planet Fitness charges $10 a month.This week, it had the biggest stock drop ever because people can't afford the $10.So what do America's top CEOs think the problem is?Here's what's happening.In just a few weeks, the CEO of Kraft Heinz, McDonald's, Whirlpool, and Planet Fitness all said the same thing.their customers are tapped out.

According to federal data, food prices are up 33 % since 2020.Energy is up 48 % and the Federal Reserve says $100 today has the same buying power as $11 .74 did in 1970.So inflation may have cooled, but prices never came down.Kraft Heinz CEOs said customers are literally running out of money by the end of the month, dipping into savings just for groceries.

McDonald's flagged heightened anxiety and rising gas costs.Whirlpool said demand And for big ticket home appliances, the kind of purchase you put off when money is tight, dropped 15%, a decline the company called recession level.And Planet Fitness canceled planned price increases and slashed its full year outlook.But here's the part that never gets explained.Cooling inflation means prices stopped going up as fast, not that they ever came down.That 33 % grocery hike from 2020 doesn't shrink just because the inflation rate dropped to 3%.

So what are the American people doing?Trading down, skipping gyms, and pulling back on appliances.And companies that spent years raising prices are now reversing course, which rarely happens voluntarily.Critics in Congress and consumer advocates say corporations used inflation as an excuse to raise prices beyond what their costs actually justify.justified, and point to record corporate profits as evidence.Industry groups say that the price increases were real and necessary and that years of government stimulus pumped too much money into the economy and drove costs up for everyone.

So, did corporations raise prices because they had to or because they could?Drop your take in the comments and follow us here for more.