China and US both in deflation?

Sharing is Caring!

After grappling with high inflation for more than two years, American consumers are now seeing an economic trend that many might only dimly remember: falling prices — but only on certain types of products.

See also  Central banks dump U.S. Treasuries, buy gold: 1,200 tonnes purchased recently. China leads gold buying spree

Deflation is impacting so-called durable goods, or products that are meant to last more than three years, Wall Street Journal reporter David Harrison told CBS News. As Harrison noted in his reporting, durable goods have dropped on a year-over-year basis for five straight months and dropped 2.6% in October from their September 2022 peak.

These items are products such as used cars, furniture and appliances, which saw big run-ups in prices during the pandemic. Used cars in particular were a pain point for U.S. households, with pre-owned cars seeing their prices jump more than 50% in the first two years of the pandemic.

https://www.cbsnews.com/news/economy-inflation-deflation-cars-furniture-appliances-what-it-means/


237 views