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No, inflation isn't 5% a year in consumer prices.



The current price cap has been in place since 2012, so prices will increase by 70% over the 19 year period from 2012 to 2031.

That works out to roughly 2.9% per year, which is a bit above the current US overall inflation rate of 2.3%, but less than the US housing inflation rate of 3.2% [1]. I don't have an opinion on whether domain prices should increase with inflation, but the increase does seem to be in line with it.

[1] https://www.bls.gov/news.release/cpi.nr0.htm


The cost to provide a domain name drops dramatically every year, like everything else in computing.




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