I think you have at least part of the explanation. Technology and just growth has caused supply to keep up and even exceed demand for things that are not free. Anymore scarcity is not caused by lack of supply, it is caused by inability of potential customers to pay. The middle class and rich have so much stuff they are downsizing. The poor don’t have money to buy stuff and the working class can even buy a bunch of cheap stuff, too much cheap stuff.

Where are we seeing huge inflation? Post secondary education and healthcare. For the former is was caused by easy loans and savvy marketing. For the latter it was mostly demographics (Aging population) and monopolistic pricing.

While deflation will be painful, it might be necessary. Continued growth without structural changes will be disastrous for the environment. Deflation will reduce demand and thus stifle growth. We could shift demand to sustainable products but that would require government intervention like rationing or outlawing carbon emissions.

TEK