Economist predicts prices stall, drop in 2023 amidst inflation

PROVIDENCE, R.I. (WLNE)– After a booming holiday shopping season across the country amidst continued inflation, local economists say Christmas craze is a positive sign for 2023.

“It looks like a lot of the inflation problem is behind us,” said Victor  Matheson, professor of economics at College of the Holy Cross. “It is generally a signal that the average consumer has money… It also means that businesses are selling a lot of goods and services which is good for you as an employee.”

The nation saw a 7.6% increase in holiday sales. Matheson says this suggests prices will stall or drop in 2023.

Matheson noted recent drops in daily expenses like groceries and gas.

He added, “There is no reason to believe those lower prices are going to skyrocket again like we saw last year.”

According to Matheson, the holiday shopping increase reflects the improved labor market. Matheson suggested taking advantage of the market by requesting higher wages or moving positions.

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