Good Lifestyle

Inflation has hit us hard in the past two years. In June 2022, the consumer price index in the United States reached 9.1%, which is the highest in 40 years. And even if he has fallen in the past 18 months, we often have the impression that we are still pay much more For things that ever. But now, relief is on the horizon, as economic experts say that we are starting to feel a deflation.

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As Forbes Notes, deflation is " Inflation mirror image . "Currently, deflation has only an impact sustainable goods ,, The Wall Street newspaper journalist David Harrison told CBS News. The price of these products decreased from one year to the next for five consecutive months, falling to a minimum of 2.6% in October since their summit in September 2022, according to Harrison's reports .

But what exactly are durable goods? Harrison explains that these are products supposed to last more than three years. More specifically, we see price reductions for cars, furniture and used devices, which all increased the cost during the pandemic.

On November 30, the American trade department published new data For the price index of personal consumer expenses (PCE). According to data, the prices of motor vehicles and parts dropped 1.5% in annual sliding in October, while used cars experienced a drop in prices of 7.1 during the same period.

Meanwhile, the total PCE for furniture and sustainable domestic equipment dropped 2.2% in annual shift in October. This was mainly drawn by a drop of almost 8.1% of household apparatus prices and a 1.2% drop in the price of furniture and furniture.

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"What does [sustainable goods deflation] mean for the economy? Well, it's a good sign," Harrison told CBS News. "The fact that these prices will decrease the continuous increase in services, and the idea is that it will bring us to the ideal point of 2%."

This "low point of 2%" is the level of inflation rate that the target federal reserve, and these recent deflation areas could help bring the United States closer to this level. This would mean that inflation is busy and that the federal reserve could keep additional rate increases.

It is unlikely that deflation becomes generalized, but it is best for the economy, according to Harrison. "[Generalized deflation] means that there is little request for goods and services, and this generally occurs in times of recession," he warned.

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