- ORIGINAL NEWS
Deflation: Here’s where prices fell in December 2023, in one chart
- SUMMARY
Prices for certain goods and services have been declining in the United States, marking a shift from the inflationary pressures seen in recent years.
This deflationary trend is driven by factors such as normalized supply and demand, a stronger U.S. dollar, and lower energy prices.
Physical goods, including toys, electronics,家具, and sporting goods, have experienced price declines as consumer demand has shifted away from goods and toward services following the COVID-19 pandemic.
The normalization of global supply chains has also contributed to lower prices.
The strong U.S. dollar has made imported goods cheaper, while falling energy prices have reduced transportation and manufacturing costs, putting downward pressure on goods prices.
However, some deflationary dynamics may not be evident to consumers as they reflect quality adjustments made by government agencies in calculating inflation rates.
Overall, certain consumer categories have moved into deflationary territory, reflecting a decrease in prices for goods and services.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“Prices declined in 2023 in categories such as physical goods, groceries and energy.”
“Supply and demand have normalized and a stronger U.S. dollar makes it cheaper to import goods.”
Negative
“Falling energy prices also put downward pressure on food transportation to store shelves.”
“The Bureau of Labor Statistics doesn’t assess health insurance inflation based on consumer premiums.”