The Indicator from Planet Money
The Indicator from Planet Money

Are we in a new era of permanently higher prices?

June 18, 2026

AI Summary

5 min read

In 2022, Mark Blyth, a political economist at Brown University, told NPR that high inflation might not be a temporary headache. It could be the new normal—permanently. "I firmly fall into the 'higher for longer, if not permanently' camp," he said. That prognosis rests on a simple but unsettling argument: the last thirty years of low, stable prices were an historical accident, and the forces that made them possible are now reversing.

The golden age of cheap everything is over

Blyth’s central claim is that the 1990s through the 2010s were an anomaly. What kept inflation low for three decades was a one-time combination of structural shocks: China and Eastern Europe joined the global labor force, flooding the world with cheap workers and cheap goods. Phones, cars, and refrigerators got cheaper every year. The IT revolution and containerized shipping slashed costs further. At the same time, U.S. presidents from Gerald Ford onward maintained a norm of not pressuring the Federal Reserve to print money for political gain—a norm that ended with the Trump administration.

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What you'll learn

  • 1 (00:00) **Fed Holds Rates Steady as Inflation Persists** - The Federal Reserve announces it is keeping interest rates on hold despite inflation at 4.2%, signaling that persistent inflation may be the new normal.
  • 2 (02:40) **Guest Introduction: Mark Blyth** - Political economist at Brown University and co-author of *Inflation: A Guide for Users and Losers*.
  • 3 (03:28) **"Higher for Longer, If Not Permanently"** - Blyth argues that high inflation could become the new normal because the disinflationary forces of the last 30 years are reversing.
  • 4 (04:41) **Inflation Hits Unequally** - The impact of inflation varies dramatically by income level; it is not a universal experience.
  • 5 (05:35) **Winner: Borrowers with Fixed-Rate Mortgages** - Inflation erodes the real value of debt, benefiting those with large, low-fixed-rate mortgages.
  • 6 (05:58) **Winner: Stock Market Investors** - Companies can quickly raise prices during inflationary shocks, boosting share prices.
  • 7 (06:34) **Corporate Profits and "Greedflation" Debate** - Executives on earnings calls openly celebrate passing price increases to consumers, a controversial point in economics.

+ Full timestamped outline available in the app

Show Notes

Inflation is at a three-year high. That’s a problem for the Fed. Yet, under the leadership of new chair Kevin Warsh, it opted yesterday not to hike interest rates. So today on the show, who are the winners and who are the losers amidst higher inflation? 

Mark Blyth’s book, co-authored with Nicolò Fraccaroli is Inflation: A Guide for Users and Losers. 

Fact checking by Sierra Juarez. 

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