As inflation drove consumer prices up to dizzying heights in 2022, many households cut back on discretionary spending in order to afford essentials like fuel, food, and rent. Even more so than other grocery items, egg prices skyrocketed last year, and continued to soar in early 2023. (The only silver lining from that inflation-ridden hellscape was the advent of the word "eggflation.")
While inflation has remained sticky across the economy, the most recent consumer price index (CPI) report shows promising year-over-year price index drops in some goods and services categories. Let's take a look at where you may be feeling some welcome relief—in the grocery store aisles, at the gas pump, and more.
What prices have deflated since last year?
Deflation is the opposite of inflation: it’s when prices fall instead of rise. Here are some of the biggest drops among foods, other goods and services.
Foods:
Eggs: -22.3%
Lettuce: -10.2%
Apples: -5.8%
Tomatoes: -4.4%
Fresh vegetables: -3.1%
Other goods:
Fuel oil and other fuels: -19.3%
Smartphones: -14%
Laundry equipment: -12%
Telephone hardware, calculators and other consumer information items: -11.2%
Major appliances: 10.6%
Services:
Airline fares: -12.1%
Car and truck rentals: -10.7%
Public transportation: -8.1%
Wireless telephone services: -2.8%
Bottom line
Even with the prices of the goods and services above dropping, others are still going up. The most recent CPI report showed that overall, prices were up 3.1% in November, down from a 3.2% year-over-year rise in October. As inflation slow down, it doesn't hurt to remind yourself how to see through inflation prices to figure out what actually constitutes a good value.
And while national averages provide helpful guidance, prices can vary locally. Download apps like GasBuddy to pinpoint cheap gas close by, and pay attention to regular grocery store specials. Whenever possible, the easiest way to save on groceries is by buying in bulk. Consumer spending is only one factor driving inflation and deflation. For many household expenses, inflation remains unrelenting—but selective price drops can provide some limited relief.