Some Products Are Actually Getting Cheaper

A Dash of Deflation

Inflation still lingers above the Federal Reserve’s target rate of 2%, and has remained high for the better part of two years.

But it turns out, not everything is on a relentless upward price hike. Some things are actually getting cheaper, and it might just slip under your radar. Why? Well, it’s durable goods doing a little price dip dance.

Consistent Decline

You know the stuff that lasts a long time — like cars and big appliances? These products on a whole have seen prices fall consistently in the second half of 2023. October alone saw a 2.2% decrease from the year prior.

Meanwhile, the PCE price index, the Fed’s preferred inflation gauge, is less than half its July 2022 high of 7%. Some economists believe the falling price of durable goods could be a major player in bringing inflation down to the Fed’s target of 2%.

New Spending Habits

As durable goods take a bit of a backseat in the shopping cart, prices are on a downward slide. This would surely be a relief to American consumers — if they were spending on durable goods. Instead, most shoppers these days are prioritizing vacations, concerts, and other experience-based purchases.

While you might be feeling the pinch elsewhere, the prices of those sturdy, long-lasting things are hitting the brakes. Consumer spending on goods barely nudged up by 0.2% in October.

While it seems like everything costs more nowadays, consumers may find relief — if they know where to look.

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