From CNBC: 2024-10-11 13:58:03

Inflation in the U.S. economy has gradually eased, with deflation seen in areas like furniture and gasoline. Prices for many physical goods have decreased due to supply-and-demand normalization. Economist Mark Zandi believes we won’t see widespread price cuts, except for certain goods like vehicles, new and used car prices have deflated since 2023.

Due to increased demand and supply chain disruptions during the pandemic, prices for core goods have deflated by 1%. Households had more discretionary income due to reduced spending on non-essential items. Now, as supply chains recover, prices for household furnishings, appliances, tools, and clothing have decreased, according to CPI data.

Vehicles have seen significant deflation, influenced by interest rate hikes and dampened demand. The strong U.S. dollar’s impact on import prices has also contributed to lower costs. Energy and food prices have normalized, with gasoline and food categories like apples and potatoes experiencing declines. Consumer electronics see price declines due to quality improvements.

Gasoline prices have decreased by 16% since 2023, and various food categories have also seen deflation. Consumer electronics continue to improve in quality, leading to price declines in the inflation data. The underlying factors influencing food and energy prices are commodity fluctuations, currency values, and trading relationships.

Read more: Here’s the deflation breakdown for September 2024 — in one chart