For Some Products, Prices Have Been Falling
|Item||% Change Last Year|
|Photographic Equipment, Supplies||-10.50%|
|Cell Phone Service||-4.03%|
|Clothing: Infant and Toddler||-2.78%|
|Pets and Pet Supplies||-2.54%|
|Tools and Hardware||-2.12%|
|Nonprescription Medical Supplies||-1.43%|
|Clothing: Women and Girls||-0.88%|
Or maybe it's also because we buy computers, TVs, appliances, new cars INFREQUENTLY (every 5 year or more in some cases), and don't notice or appreciate the price decreases the same way we notice price changes for food and fuel that we purchase FREQUENTLY? But there does seem to be a certain degree of mis-perception among the general public and media that ALL prices are going up, which is clearly not the case. And since inflation is a period when most prices (and wages) are rising, I don't think we're anywhere close to meeting that situation yet. Not as long as so many prices are declining, not rising.
Update: See today's front page WSJ article "Split in Economy Keeps Lid on Prices," here's a quote:
"The conflicting forces: Soaring commodities costs world-wide are pushing up prices for many goods, while a slowly recuperating U.S. economy, soft housing market and a persistently high unemployment rate are holding down prices for U.S. services.
Goods prices were up 2.2% from a year earlier, paced by jumps in food and energy prices, according to the Labor Department's January consumer-price index, and are rising faster than they did before the recession. But services prices were up only 1.2% from a year earlier, far below the 3.4% inflation rate registered for services between 2000 and 2008."