But today I start a new blog category - DEFLATION. Because one effect of the inability for wages to rise, is there is a fixed amount of money that can be used to buy products. So as more and more of that slowly growing pie is used for food and energy that leaves less for everything else - hence deflation in other parts of the system. How that is "good" for producers who produce these items is beyond me, but somehow Wall Street can twist it into a reason to buy buy buy. So let's see what is on sale!
- Inflation may be climbing faster than the humidity level, but there are still some things that actually cost less than they did a year ago.
- Friday's report on the consumer price index confirmed the predicted rise in gasoline and food costs, but core prices remained relatively flat. While financial markets cheered the results, they didn't give much comfort to consumers. The latest snapshot of consumer sentiment on Friday showed that it plunged to a 28-year low in June.
- With that in mind, here's a look at a few of those things that aren't pinching your wallet.
- Electronics - The average price of a point-and-shoot digital camera has fallen $28 from a year ago, to| $178, according to the NPD Group, a consumer tracking service. The cost of LCD flat-panel TVs is also expected to drop $18 this year, to an average $848, while notebook computers are forecast to fall 9 percent, to $775, according to the Consumer Electronics Association.
- Women's Clothing - Another area to spot savings is women’s apparel, even though the price for men’s and children’s clothing is on the rise, according to the CPI’s April 2008 report. If a female consumer went to a clothing store today, she would pay at least 4 percent less than she did a year ago for a pair of pants/slacks, which have an average price of $19.07, according to NPD.
- Hotel Rooms - There’s more good news. For travelers left sulking about increasing flight costs, the average daily rate for hotel lodging decreased in the month of April, down from $109.44 to $108.07, according to Smith Travel Research, of Hendersonville, Tenn.
- Theme Parks - And if lower hotel prices inspire consumers to take a vacation, it might include a trip to a theme park, where prices are also falling. Six Flags (NYSE:SIX - News) cut $10 off entry prices at the majority of their 19 parks in April, setting admission at $34.99 for its St. Louis park and $24.99 for the Texas-based Hurricane Harbor water park. "People just aren’t going out as much," Glassman said. "People are getting squeezed, and they’re starting to push back."
- Toys - The severe competition in this industry, paired with cheap overseas production costs, caused this steady 5.3 percent year-on-year decrease, Glassman said.
- Dinnerware - Household goods brought more price cuts, particularly in dinnerware, according to NPD. Although prices didn’t decline for every product in this category, the price of formal, fine dinnerware, which NPD defines as bone china or porcelain with a metal accent band, decreased about 6 percent, falling from $39.58 to $37.10.
Those of you who choose to drive to your vacation destination (instead of flying) near an amusement park (stay-cations are for losers who need to eat) , with your new dinnerware in the trunk so you can eat in the hotel room, not paying much attention because you have your iPod ear buds in, arriving at a mid priced hotel, but more than happy to retreat after a day of fun to play Monopoly in the comfort/privacy of said hotel room, in the comfort of your cross dressing clothing... well you are living the high life and probably sneer at my daily rantings against inflation. You don't see it. Life is good. (inflation free)
The rest of you? You live a more traditional lifestyle... and are suffering. ;) But it's important for us who are suffering to hear the great news about how the other half are living.
