Some Products Are Actually Getting Cheaper

By: Kaydee Ambas · December 06, 2023 · Reading Time: 2 minutes

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.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

TLS 1.2 Encrypted
Equal Housing Lender