{"id":71967,"date":"2024-07-13T03:00:17","date_gmt":"2024-07-13T03:00:17","guid":{"rendered":"http:\/\/guid_108005241"},"modified":"2024-07-13T03:00:17","modified_gmt":"2024-07-13T03:00:17","slug":"heres-the-deflation-breakdown-for-june-2024-in-one-chart","status":"publish","type":"post","link":"https:\/\/wp.timesamerica.net\/heres-the-deflation-breakdown-for-june-2024-in-one-chart\/","title":{"rendered":"Here&#8217;s the deflation breakdown for June 2024 \u2014 in one chart"},"content":{"rendered":"\n<div><img decoding=\"async\" src=\"https:\/\/wp.timesamerica.net\/wp-content\/uploads\/2024\/07\/heres-the-deflation-breakdown-for-june-2024-in-one-chart.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107070558\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div class=\"InlineImage-imagePlaceholder\" style=\"padding-bottom:55.55555555555556%\">\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<\/div>\n<div>\n<div class=\"InlineImage-imageEmbedCaption\"><\/div>\n<div class=\"InlineImage-imageEmbedCredit\">97 \/ Getty<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Inflation has <span class=\"waslinkname\">throttled back<\/span> significantly since peaking two years ago. The U.S. economy is even seeing some prices deflate for consumers.<\/p>\n<p>Deflation measures how quickly prices are falling for a consumer good or service. It&#8217;s <span class=\"waslinkname\">the opposite<\/span> of inflation, which gauges how quickly prices are increasing.<\/p>\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<p>Physical goods have accounted for much of the deflation over the past year, according to economists. This is happening as supply and demand dynamics that were thrown out of whack in the pandemic normalize.<\/p>\n<\/div>\n<div class=\"group\">\n<div id=\"RegularArticle-DataWrapperChart\" class=\"DataWrapperChart-dataWrapperContainer\"><iframe title=\"Here's the deflation breakdown for June 2024\" aria-label=\"Table\" id=\"datawrapper-chart-67rvh\" src=\"https:\/\/datawrapper.dwcdn.net\/67rvh\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"1411\" data-external=\"1\"><\/iframe><\/div>\n<\/div>\n<div class=\"group\">\n<p>Commodity prices (excluding those related to food and energy) \u2014 so-called &#8220;core&#8221; goods \u2014 have declined by 1.8%, on average, since June 2023, according to the <span class=\"waslinkname\">consumer price index<\/span>, a key inflation measure.<\/p>\n<p>&#8220;We have seen core-goods deflation in quite a few categories,&#8221; according to Olivia Cross, a North America economist at Capital Economics.<\/p>\n<p>&#8220;It&#8217;s quite broad based,&#8221; she added. &#8220;I think that&#8217;s something we expect to persist for a little while.&#8221;<\/p>\n<p>Prices on gasoline and many grocery items have also pulled back.<\/p>\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<p>However, consumers shouldn&#8217;t expect a broad and sustained fall in prices across the U.S. economy. That generally doesn&#8217;t happen unless there&#8217;s a recession, economists said.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">Why prices are deflating for goods<\/h2>\n<div class=\"group\">\n<p>Demand for physical goods soared in the early days of the Covid pandemic as consumers were confined to their homes and couldn&#8217;t spend on things such as concerts, travel or dining out.<\/p>\n<p>The health crisis also <span class=\"waslinkname\">snarled global supply chains<\/span>, meaning goods weren&#8217;t hitting the shelves as quickly as consumers wanted them.<\/p>\n<p>Such supply-and-demand dynamics drove up prices.<\/p>\n<\/div>\n<div class=\"group\">\n<div id=\"RegularArticle-DataWrapperChart\" class=\"DataWrapperChart-dataWrapperContainer\"><iframe title=\"U.S. consumer price index\" aria-label=\"Interactive line chart\" id=\"datawrapper-chart-FDl1q\" src=\"https:\/\/datawrapper.dwcdn.net\/FDl1q\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"458\" data-external=\"1\"><\/iframe><\/div>\n<\/div>\n<div class=\"group\">\n<p>The environment has changed, though: The initial pandemic-era craze of consumers fixing up their homes and upgrading their home offices has diminished, cooling prices. Supply-chain issues have also largely unwound, economists said.<\/p>\n<p>Since June 2023, consumers have seen <span class=\"waslinkname\">prices deflate<\/span> for goods like home furniture for a living room, kitchen or dining room (down by 4.9%), appliances (-3.6%), toys (-6%), dishes and flatware (-10.2%) and outdoor equipment like grills and garden supplies (-4.3%).<\/p>\n<p><strong>More from Personal Finance:<br \/><\/strong><span class=\"waslinkname\">High inflation largely not Biden&#8217;s, Trump&#8217;s fault: economists<\/span><br \/><span class=\"waslinkname\">Here&#8217;s the inflation breakdown for June 2024 \u2014 in one chart<\/span><br \/><span class=\"waslinkname\">Here&#8217;s why housing inflation is still stubbornly high<\/span><\/p>\n<p>Car buyers have also seen prices for new vehicles fall more than 1% and for used vehicles by roughly 10% over the past year. Vehicle prices were among the first to surge when the economy reopened broadly early in 2021, amid a <span class=\"waslinkname\">shortage of semiconductor chips<\/span> essential for manufacturing.<\/p>\n<p>&#8220;Vehicle prices remain under pressure from improved inventory and elevated financing costs,&#8221; Sarah House and Aubrey George, economists at Wells Fargo Economics, wrote in a note this week. (Higher financing costs are the result of the Federal Reserve <span class=\"waslinkname\">raising interest rates<\/span> to tame inflation.)<\/p>\n<\/div>\n<div class=\"group\">\n<div id=\"RegularArticle-DataWrapperChart\" class=\"DataWrapperChart-dataWrapperContainer\"><iframe title=\"U.S. consumer price index\" aria-label=\"Column Chart\" id=\"datawrapper-chart-LHCtb\" src=\"https:\/\/datawrapper.dwcdn.net\/LHCtb\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"472\" data-external=\"1\"><\/iframe><\/div>\n<\/div>\n<div class=\"group\">\n<p>Outside of supply-demand dynamics, the U.S. dollar&#8217;s strength relative to other global currencies has also helped rein in prices for goods, economists said. This makes it less expensive for U.S. companies to import items from overseas, since the dollar <span class=\"waslinkname\">can buy more<\/span>.<\/p>\n<p>Long-term forces like globalization have also helped, such as importing more lower-priced goods from China, Cross said. However, a shift toward higher tariffs and less free trade could serve to push up goods prices &#8220;quite significantly,&#8221; she added.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">Why there&#8217;s been deflation for food, travel, electronics<\/h2>\n<div class=\"group\">\n<p>Prices have also declined for items including food, travel and electronics.<\/p>\n<p>Grocery prices have fallen for items such as ham, rice, potatoes, coffee, milk and cheese, according to CPI data.<\/p>\n<p>Each grocery item has their own supply-and-demand dynamics that can influence pricing, economists said. For example, apples prices are down 12% in the past year due to a <span class=\"waslinkname\">supply glut<\/span>, while egg prices <span class=\"waslinkname\">surged in 2022<\/span> due largely to a historic and deadly outbreak of bird flu.<\/p>\n<\/div>\n<div class=\"group\">\n<div id=\"RegularArticle-DataWrapperChart\" class=\"DataWrapperChart-dataWrapperContainer\"><iframe title=\"Annual deflation but monthly inflation June 2024\" aria-label=\"Split Bars\" id=\"datawrapper-chart-aQCkw\" src=\"https:\/\/datawrapper.dwcdn.net\/aQCkw\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"450\" data-external=\"1\"><\/iframe><\/div>\n<\/div>\n<div class=\"group\">\n<p>Gasoline prices have fallen by 2.5% in the past year. Weaker recent prices were the result of &#8220;tepid gasoline demand, increasing supply, and falling oil costs,&#8221; <span class=\"waslinkname\">according<\/span> to AAA.<\/p>\n<p>Travelers have seen deflation for airline fares (prices are down 5.1% annually) amid factors like an <span class=\"waslinkname\">increased volume<\/span> of available seats. Hotel rates are also down, by 2.8%, and car rental rates by 6.3% since June 2023.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108004493\"><\/div>\n<div class=\"group\">\n<p>Consumers also appear to be more price sensitive, which has caused retailers to be a bit more cautious, economists said.<\/p>\n<p>For example, there have been more price promotions lately at grocery stores, with a few &#8220;major retailers recently announcing price cuts that are likely to pressure competitors&#8217; pricing,&#8221; wrote House and George of Wells Fargo.<\/p>\n<p>Elsewhere, some deflationary dynamics may be happening only on paper.<\/p>\n<p>For example, in the CPI data, the Bureau of Labor Statistics <span class=\"waslinkname\">controls<\/span> for quality improvements over time. Electronics such as televisions, cellphones and computers continually get better, meaning consumers generally get more for the same amount of money.<\/p>\n<p>That shows up as a<span class=\"waslinkname\"> price decline<\/span> in the CPI data.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 class=\"RelatedContent-header\">Don\u2019t miss these insights from CNBC PRO<\/h2>\n<div class=\"group\">\n<ul>\n<li><span class=\"waslinkname\">Oppenheimer raises S&amp;P 500 target to 5,900, second highest on Wall Street<\/span><\/li>\n<li><span class=\"waslinkname\">Warren Buffett on his unwavering faith in the country \u2014 &#8216;Never bet against America.&#8217;<\/span><\/li>\n<li><span class=\"waslinkname\">Jefferies says shares of this lesser known global delivery firm are set to soar over 125%<\/span><\/li>\n<li><span class=\"waslinkname\">These types of ETFs could prove winners in the second half<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"ArticleBody-MobileAdhesion\" class=\"MobileAdhesion-container\" data-module=\"mps-slot\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>97 \/ Getty Inflation has throttled back significantly since peaking two years ago. The U.S. economy is even seeing some prices deflate for consumers. Deflation measures how quickly prices are falling for a consumer good or service. It&#8217;s the opposite of inflation, which gauges how quickly prices are increasing. Physical goods have accounted for much &hellip;<\/p>\n","protected":false},"author":1,"featured_media":71968,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-71967","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bussiness","has-thumb","has-featured"],"_links":{"self":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/71967"}],"collection":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/comments?post=71967"}],"version-history":[{"count":0,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/71967\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/media\/71968"}],"wp:attachment":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/media?parent=71967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/categories?post=71967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/tags?post=71967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}