My rule of thumb is that technology is deflationary.
Via technology improvement, people get more for the same price.
This is evident in chip technology, where the same amount of money buys you newer chips with better performance each year. It’s more obvious when you notice that the “best” chips of previous years will always cost less if you wait.
It’s not always the case in other industries.
The same can of coke will cost you more over the years!
Pharmaceutical and biotech can be technology.
One example is the genome sequencing cost, which has dropped significantly.
Over the years, a drug normally will see its price drop significantly, thus patients shall pay much less for the exact same product.
However, during the period of a few years, drug price may increase, before the price erosion. This period is coke-like.