14 household items whose prices are falling amid record inflation – 24/7 Wall St.

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Those who thought inflation would start to decline were surprised by June’s consumer price index. It showed prices rose 9.1% from the same month in 2021. It was the biggest jump since November 1981, and it sent a clear message that the damage done to the US economy by inflation are not over. Still, not all household items soared. Indeed the price of smartphones is plunging.

Inflation began to soar towards the start of the year, after a long period in which the CPI was up around 2% a year in most months. This period of low inflation allowed Americans to enjoy exceptionally high discretionary income, which in turn helped increase economic growth.

Supply chain issues, due in part to the COVID-19 pandemic, have begun to plague businesses. This, in turn, caused a shortage of goods and services needed to create consumer goods. The Russian invasion of Ukraine has exacerbated supply chain issues. The invasion triggered sanctions against Russia, which is one of the world’s largest producers of crude oil. The resulting drop in supply was considerable. Fuel is one of the items most affected by inflation. Gas prices are up 50% or more from a year ago.

The solution to the inflation problem has been hotly debated by economists. One solution to lowering prices, at least in theory, is for the Federal Reserve to raise rates and restrict consumption. The Fed has launched an aggressive rate hike program, but it may be too little, too late. Critics believe these rate increases should have started last year.

One of the more pessimistic pundits who have offered a way out of rising inflation is Larry Summers, former Treasury secretary and former Harvard president. He is also considered one of the most gifted economists of his generation. He recently told an audience at the London School of Economics: “We need five years of unemployment above 5% to contain inflation – in other words, we need two years of unemployment at 7, 5% or five years of unemployment to 6% or one year of 10% unemployment.’ Unemployment has not topped 7% since some of the worst days of the Great Recession. (Here States with lowest unemployment rate.)

Much of economists and the general public believe that a recession will start soon, if it hasn’t already started.

While fuel prices have risen more than 50% and the price of some food items that Americans regularly use have risen more than 20%, the price of several items has fallen. To determine which household items are falling in price, 24/7 Wall St. looked at the BLS Consumer Price Index Summary Report for June. Prices are compared to June 2021.

Among the 14 items that people buy regularly and whose price has dropped are computers and televisions.

The price of an item owned by most Americans fell the most last month, according to the CPI. The cost of smartphones has fallen by 20%.

According to Pew, about 85% of Americans owned a smartphone last year. People upgrade them regularly as new models are released, especially from market leader Apple. One of the reasons for falling smartphone prices is the fierce competition between Verizon, AT&T and T-Mobile to win new customers, most of which come from each other. (Here is 48 most popular phones of all time.)

Click here to see 14 household items whose prices are dropping amid record inflation.

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