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

Click to enlarge

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%

Comments

[fatcat:]

I agree with your thesis ,however,how often do you buy a watch or a bedroom?

2008 May 05 08:10 AM

[linenoise:]

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....

2008 May 05 08:34 AM

[John Pseudonym:]

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.

2008 May 05 09:19 AM

[John Pseudonym:]

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.

2008 May 05 09:22 AM

[hilo:]

another bullshit artcle from dr perry

2008 May 05 06:19 PM

[calvino:]

It's the gasoline, diesel, heating oil and electric.. stupid.

2008 May 06 01:44 AM

[tginomorebush:]

this is 2008....... NOT 1901 ........ WASTE of time article

2008 May 06 08:49 AM

[Doug Roberts:]

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.

2008 May 06 01:52 PM

[truckerblues:]

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.

2008 May 06 02:24 PM