Prices for commonly purchased items such as groceries and diapers keep going up — or at least it feels that way.
But with inflation cooling off over the last year, a few things have actually gotten cheaper. The discounts are a welcome relief for Americans who have weathered the cost of goods and services increasing 17% over the past three years, as measured by the consumer price index.
At 3.3%, the year-over-year inflation rate is still above the Federal Reserve’s target of 2%, but price decreases are an encouraging sign that costs are trending in the right direction. Here’s a look at the most significant discounts in the past year, expressed as percentages.
Used cars and trucks: -9.3%
Used cars and trucks epitomized pandemic-related inflation in 2021, with prices rising 40.5%, according to CPI data. Prices have since fallen and steadily declined over the past two years.
The decline in prices is largely due to a glut of used cars on the market, which is basically the opposite of what happened during the Covid-19 pandemic. A used car worth $25,000 in 2023 would now sell for $22,675 — a $2,325 discount, based on CPI data.
Dishes and flatware: -8.1%
The cost of dishes and eating utensils is sensitive to home sales, as many people upgrade their kitchen supplies when they move. Fewer homes being sold is likely a factor in the reduced cost of dishes and flatware.
Dishware is also easier to produce compared to other industries, so there is a large number of competitors, many of which slashed prices over the past year. You will often see big retail chains offering dinnerware sets as part of clearance sales.
Televisions: -6.6%
Television prices have been trending downward over the past 12 months, after posting an 11.5% year-over-year drop as of May 2023. This reflects a longer-term trend of price declines, as TVs have become cheaper to produce.
Another factor is that data collection from “Smart TV” interfaces generates revenue for manufacturers, which allows them to lower TV prices further.
Major appliances: -6.2%
Expect to find good deals on ovens, fridges, freezers, dishwashers and other large appliances, as prices have dropped 3.5% so far in 2024, following a 7.3% decline in 2023. Over the past 12 months, major appliance costs have declined 6.2%.
This is due to several factors. Factory efficiencies have reduced production costs, making it easier for manufacturers to discount major appliances. The industry is also very competitive, which means discounts are common. Plus, the slowdown in the housing market discouraged sales, as people tend to buy appliances when they move into new homes.
Airline fares: -5.9%
Flight prices surged 25% in 2022 due to pent-up demand for travel and high fuel prices, but they have since subsided somewhat.
Cheaper fuel prices have helped bring overall flight costs down, as have reduced business travel, increased flight capacity and moderating demand for flights compared to 2022.
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