You are right, it's easier to bake in quality decreases (aka "cost reductions") to keep the price stable than increase the price. Users usually don't see it directly, and since the whole industry does the same there is no real alternative.

A good way to see this is in clothing: my wife likes to buy vintage clothes, part because of the style, but also because most of them are actually well made and sturdy.

Nowadays it's almost impossible to get the same quality and finishes, even with the more expensive brands. Due to the mass-production of low quality clothing, (most) consumers don't even have a clear idea of what "quality" looks like, which further reduces incentives for manufacturers.

For comparison, some niche menswear brands keep the quality stable (as their specific consumer base asks for it). Say Northampton leather shoes for instance (Crockett and Jones et al.), which are still made in the UK (not in an mafia-ran sweatshop in Italia for luxury goods...).

Their products are amazing, and...the price grows 5-10% per year steadily.