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Higher prices may be slow to come down even if tariffs go away, economists say

  • Economists state that prices tend to rise quickly but fall slowly, a phenomenon known as 'sticky' prices.
  • Kenneth Louie, director of the Economic Research Institute, explains that price stickiness relates to disinflation, where prices rise at a slower rate.
  • Joseph Gagnon, a senior fellow at the Peterson Institute, suggests that manufacturers may absorb some cost increases from tariffs, preventing immediate price hikes.
  • Prices tend to rise quickly but fall slowly, as explained by Kenneth Louie, director of the Economic Research Institute of Erie at Penn State University.
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worldcrunch.com broke the news in on Wednesday, April 9, 2025.
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