Despite the overall inflation in the United States, some things have actually become cheaper than last year as inflation cools down.
According to the Consumer Price Index (CPI), prices of goods and services have increased by 17% over the past three years. Although the inflation rate slowed to 3.3% in May, it still remains above the Federal Reserve’s target of 2%.
Here are five things summarized by CNBC that are cheaper than last year:
Based on CPI data, the prices of used cars and trucks increased by 40.5% in 2021, representing a typical example of inflation related to the Covid-19 pandemic. Since then, prices have fallen and steadily declined over the past two years.
The main reason for the price drop is an oversupply of used cars in the market, which is in contrast to the situation during the Covid-19 pandemic. According to CPI data, a used car valued at $25,000 in 2023 is now selling for $22,675, a discount of $2,325.
The prices of dinnerware are sensitive to home sales because many people upgrade their kitchenware when moving. The decrease in the number of homes sold is likely one factor contributing to the lower prices of dinnerware.
Compared to other industries, dinnerware is also easier to produce, leading to a significant decrease in prices as many competitors have slashed prices over the past year. It is common to see large retail chains offering dinnerware sets as part of clearance sales.
The prices of televisions have been on a downward trend over the past 12 months.
Many factors are contributing to the decrease in television prices, some related to manufacturing and others more to marketing. Increased competition and more efficient production processes are driving this trend. Some 55-inch TVs are now retailing for less than $250 at physical stores like Best Buy and Target, as well as online retailers like Amazon.
Another factor is the revenue generated for manufacturers through data collected by “smart TVs,” allowing them to further reduce television prices.
The prices of ovens, refrigerators, freezers, dishwashers, and other large appliances decreased by 7.3% in 2023 and have further dropped by 3.5% so far in 2024. Over the past 12 months, the prices of large appliances have fallen by 6.2%.
Factors leading to the decrease in prices of major appliances include increased factory efficiency lowering production costs, making it easier for manufacturers to offer discounts. The industry’s high level of competition also means discounts are common. Additionally, the slowdown in the real estate market has dampened sales, as people often purchase appliances when moving into a new house.
After a 25% surge in 2022, airplane ticket prices have seen a decline. The current lower fuel prices compared to 2022 are helping reduce overall flight costs. In May, the ticket prices of American airlines decreased by 5.9% compared to last year.
The Hopper booking app predicts that domestic flight prices for summer until August will decrease by about 6%, to $315 per ticket, marking the first summer price drop since 2020.