Monday, November 28, 2022

Inflation at 93 percent CPI item, but 8 deals are left


“The Looking Glass” considers economic and real estate trends through two different lenses: the optimist’s “glass half-full” and the pessimist’s “glass half-empty.”

Discussion: With inflation running at a 40-year high – an ugly 8.6% nationally – one would think that everything is worth it. Indeed, of the 333 items tracked in the monthly inflation report, 93% were more expensive in May than a year earlier.

Source: My Trusted Spreadsheet reviewed the latest Consumer Price Index for May, looking at 12-month price changes.

glass half full

OK, 93% isn’t 100%, so here are eight goods and services that government inflation figures suggest there may be “bargaining.” They are probably a rare piece of the economy where consumer demand is low.

1. Smartphone Top this chart at 19.9% ​​cheaper in a year. My guess is there’s a company that hasn’t come out with a killer new product in a few years. In such a situation, when people are not in a hurry to buy a new phone, then the traders are cutting the prices accordingly.

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2. Entry to Sports Events 10.8% cheaper. Many teams are still suffering attendance hangovers from the pandemic’s shutdown. Logic says ticket deals are being made to bring fans back to the ballpark or arena.

3. Television 9.5% are cheap. Everyone bought a new TV – maybe even two – during the pandemic’s home stay period. With a “slightly normal” living, the outdoorsy lifestyle seems like a better investment. And I wonder, you need that many new TVs?

4. Cruise Fare 5.3% are cheap. I’ll ask a simple question: “Who wants to be stuck in cramped quarters with lots of strangers?” Cruises are not high on the list of popularity these days.

5.Computer Software and Accessories 3.9% are cheap. As more staff and students move back to the office or classroom setting, I would speculate that the software in one’s home computer needs to be upgraded or added.

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6. Other Intercity Transportation – That’s trains and buses, not planes – down 3.6%. Let’s say again, crowded situations are not popular. Operators need to incentivize customers by price.

7. Men’s Pants and Shorts 1.6% are cheap. I have a feeling that office workers might just dust off the clothes they haven’t worn in two years.

8. Jewelry 1.2% is cheaper. I’ve read that Millennials are less interested in treasured bling than in previous generations. Maybe they are spending all their money on buying a new home or the high cost of renting a fancy apartment.

glass half empty

Of those 333 goods and services tracked by the CPI, 39% of all goods and services tracked saw a price jump of 10% or more during the 12-month period ended May.

Jonathan Lancer is a business columnist for the Southern California Newsgroup. He can be contacted at [email protected]

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