Inflation has investors on edge. But some sectors have deflated
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Some segments of the U.S. economy have deflated over the past year, according to the consumer price index. The cost of household goods, travel, and some grocery items like apples have fallen. However, CPI data for March came in hotter than expected, suggesting that the fight to rein in consumer prices may take longer than expected. Categories of goods and services that have deflated include physical goods like cars, furniture, and appliances, as well as some food and energy-related products. The downward pressure of deflation has tamed in recent months as supply-and-demand dynamics have normalized. The demand for home goods has diminished, leading to falling prices for household furnishings, laundry equipment, furniture, bedding, dishes, flatware, toys, outdoor equipment, and sporting goods. The U.S. dollar's strength relative to other global currencies has helped rein in prices for goods. Prices for new and used vehicles have also deflated slightly over the past year, as have travel costs for airfare, hotels, and rental cars. Grocery prices have come to a standstill, with some food categories like ham, cheese, and coffee declining. However, deflationary dynamics may only happen on paper, as quality improvements over time in electronics show up as price declines in the CPI data.

#Inflation #Deflation #ConsumerPrices #UsEconomy

https://www.cnbc.com/2024/04/11/inflation-has-investors-on-edge-but-some-sectors-have-deflated.html