Used Cars, Furniture and 7 More Big-Ticket Items That Are Getting Cheaper
The United States economy has managed to dodge a recession so far in 2024 without a substantial increase in unemployment or slowdown of growth. Despite the belief the country isn’t out of the mire yet, inflation has gradually cooled since it topped out at 9.1% in June 2022.
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According to the U.S. Bureau of Labor Statistics latest Consumer Price Index (CPI), rose by 2.5% year-over-year (YOY) from August 2023, and dropped from 2.9% in July 2024. Remarkably, we are finally nearing the Federal Reserve’s inflation target of 2.0%.
Following decades of operating below 3%, inflation has been harsh over the past few years. As the economy recovered from lockdowns connected to COVID-19, the CPI rose sharply and Americans felt pinched and struggled to buy even basic everyday items. Purchasing expensive, “big-ticket” products has been out of the question for many American households since inflation started creeping up in mid-2021.
While many CPI items — especially groceries like meat, dairy products and food away from home, alcohol and tobacco, shelter, education and medical and home care services — have seen prices increase YOY, some have dropped in price. In fact, certain products that are normally priced at a premium are cheaper than they were in August 2023, including used cars, furniture and seven other typically costly items listed below.
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1. Used Cars
While vehicles, parts and insurance have been stubbornly expensive since the beginning of the pandemic, used car prices have cooled over the last year. If Kelley Blue Book predictions are accurate, they might continue to decrease heading into the holidays. According to Business Insider, used car prices have actually been on the decline for two years now — down by 10.4% YOY and by a whopping 20.2% since Feb. 2022.
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2. Furniture
At the beginning of the pandemic, furniture prices began to rise due to high shipping container costs and increased demand from Americans working from home. However, with supply healthy, container costs down and less people buying houses that need filled with sofas, beds and tables, companies have been cutting prices close to what they would have been in 2019, per Business of Home. Furniture and bedding has decreased in price by 5.1% from Aug. 2023 to Aug. 2024.
3. Appliances
Replacing household appliances has always been an inconvenient financial burden. Although some experts believe they don’t last as long as they used to, the appliance index, which includes major household appliances and laundry equipment, is down 3.2% since last August.
4. Tools and Hardware
The pandemic (and the economic concerns that followed) caused prices for many goods and services to skyrocket, including tools. Stocking a basic toolbox or shed might cost you dearly, but picking up the occasional tool, piece of hardware, outdoor equipment and supplies won’t cost as much as it did last August. This index has dropped by 3.4% YOY.
5. Apparel
Overall, apparel is up slightly since Aug. 2023 by 0.3%. However, more expensive items like men’s suits and sport coats (-9.8%) and women’s outerwear (-8.6%) and dresses (-4.3%) have dropped in price significantly over the past year.
6. Televisions
Americans love their televisions, and because supply is plentiful and variety wide, finding a deal isn’t really a difficult task. However, it’s nice to know that TVs are one of the video and audio products that dipped YOY. Price of televisions are 5.6% lower since August 2023, while other video equipment is down 6.3%.
7. Smartphones
The general IT commodities index has dropped 6.5% from Aug. 2023, thanks in part to smartphones — which are 9.3% cheaper than they were last year — and to unfashionable telephone hardware, calculators and other consumer information products which have an YOY index percent of -10.2.
8. Sporting Goods
To reduce their risk of exposure to the COVID-19 virus, people were encouraged to avoid going inside many public buildings. As Americans gained a renewed appreciation for human connection through isolation, they also learned to enjoy their own company. Gyms and team sports were hit particularly hard by the pandemic, but consumers strove to stay healthy by doing home workouts and outdoor activities. The sporting goods price segment — equipment and sports vehicles, including bikes — has fallen 1.9% since August 2023.
9. Household Equipment and Furnishings
This overall index showed only a small decrease over the year ending in August 2024 (-1.7%). However, clocks, lamps and decorator items (-2.1%), dishes and flatware (-6.7%) and non-electric cookware and tableware (-8.9%) saw significant price drops. On the other hand, live indoor decos — like plants and flowers — shot up 5.6%.
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This article originally appeared on GOBankingRates.com: Used Cars, Furniture and 7 More Big-Ticket Items That Are Getting Cheaper