In early 2024, it was expected that inflation would gradually subside and the Federal Reserve (Fed) would lower interest rates. However, recent data has shown that inflation is more persistent than anticipated, with rising prices for goods and services across the board. This has caused the Fed to reconsider its plans and delay any potential rate cuts. The news has led to market volatility and concerns that the battle against inflation will be prolonged.
Inflation remains elevated despite a recent slowdown, with February prices rising 3.2% year-over-year. Gasoline, shelter, and services like sporting events and tax preparation saw significant increases. While real wages are improving, inflation has eroded purchasing power. Interest rates, used by the Federal Reserve to combat inflation, may not be cut soon, affecting borrowers with high-interest debt.
Furniture manufacturing has shifted towards prioritizing lower cost over quality, leading to a decline in durability. The use of composite materials like plywood and MDF, as well as flat-pack designs, has compromised repairability and shortened the lifespan of furniture. Despite rising demand during the pandemic, furniture prices have not increased significantly, but consumers are more inclined to choose affordable pieces despite their lower quality. Nevertheless, experts emphasize the importance of researching and inspecting furniture to find pieces that offer value and durability.
