- ORIGINAL NEWS
Deflation: Here’s where prices fell in January 2024, in one chart
- SUMMARY
Parts of the U.S. economy like furniture, clothing, and appliances are experiencing falling prices, which is called deflation.
This is happening because the demand for goods has decreased and the supply has increased.
However, the cost of services, such as haircuts and doctor’s visits, is still rising, but at a slower rate than before.
While this isn’t full-blown deflation, it’s a sign that inflation is easing.
The falling prices of goods are likely due to factors like improved supply chains, a stronger U.S. dollar, and lower energy costs.
However, it’s important to note that the price drops for some items, like electronics, may only appear on paper due to quality improvements in the products.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“So-called “core” goods inflation — which exclude food and energy prices, which can be volatile — was negative 0.3% in January 2024 relative to a year earlier, according to the latest consumer price index data issued Tuesday by the U.S. Bureau of Labor Statistics.”
“Overall grocery prices rose at a 1.2% pace in the past year, according to CPI data.”
Negative
“Economists fear that attacks by Houthi militias on merchant vessels in the Red Sea — a major trade route — could cause shipping disruptions and a reversal of some goods deflation.”
“Egg prices have started to climb again in recent months, however, due to a comeback of avian flu.”