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Many Consumer Prices Have Fallen, Not Risen, in the Last Year

by: Mark Perry May 05, 2008    

Mark J. Perry, Ph.D.

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Interesting graphic above from yesterday's NYTimes, showing the percentage breakdown of consumer spending in 2008 (15% on food and beverages [vs. 46.4% in 1901!], 18% on transportation, 42% on housing, etc.), and the percentage change in the components of the CPI over the last year from March 2007 to March 2008.

Notice all of the components above in blue, showing the more than 30 goods that have FALLEN in price over the last year (the NYTimes graph is interactive - move your cursor around to see specific items and price changes), including even many food items, such as:


Citrus fruits: -9.5%

Lettuce: -3.2%

Pork chops: -1.3%

Ham: -1.3%

Sugar: -1.7%

Bedroom furniture: -2.3%

New cars: -1.1%

TVs: -18.3%

Clocks, lamps, decorations: -7.5%

Computers: -12%

Women's suits: -6%

Men's shirts: -3.4%

Girl's clothes: -9.4%

Watches: -2.3%

Software: -5.3%

Toys: -5.2%

Phones: -5.3%

Outdoor equipment: -2.5%

Cameras, film: -6.1%

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This article has 9 comments:

  •  
    May 05 08:10 AM
    I agree with your thesis ,however,how often do you buy a watch or a bedroom?
    Reply
  •  
    May 05 08:34 AM
    The top five items are potentially "essentials" but everything else is luxury items. So yeah.... The price of things that people haven't been buying because they're too poor from buying gasoline have fallen....
    Reply
  •  
    May 05 09:19 AM
    Where's the other half of the list; 30 goods that have risen in price?

    Food, transportation and rent...hmmm...guess those don't matter since we rarely spend our money on those items.

    Reply
  •  
    May 05 09:22 AM
    That big decline in TV's is because they were way over priced due to the ongoing switch to LCD, Plasma from the old tube tech.

    There was a huge demand for HD TV's and manufactures were charging whatever they could get for the new sets.

    LCD TV's technically will last forever. The majority have switched from tube tech and we're on the downward side of demand and price for HD TV's.
    Reply
  •  
    May 05 06:19 PM
    another bullshit artcle from dr perry
    Reply
  •  
    May 06 01:44 AM
    It's the gasoline, diesel, heating oil and electric.. stupid.
    Reply
  •  
    May 06 08:49 AM
    this is 2008....... NOT 1901 ........ WASTE of time article
    Reply
  •  
    May 06 01:52 PM
    Hi Mark -
    Absolutely loved the interactive graphic. I look for your posts all the time. Don't let the criticism get you down - you must be on to something.
    Reply
  •  
    May 06 02:24 PM
    You know what mister, youn must live be on another planet.

    To even suggest that prices have gone down in this economy,
    SUGGESTS to me that you have lost all touch with reality.

    I think it's time you took your Phd diploma and put it away in the
    garage man.
    Reply
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