It has been around four decades since inflation was as high as it is right now in the United States.
From record low inflation during the beginning of the pandemic, and even a less severe recession during the global Covid-19 than expected, consumers are now fighting inflation that sits at 8.3%.
That's barely lower than the 8.5% Americans had to endure in April, and a sign that while regulators may finally be jumping in to cool down an overheated market, so far inflation remains stubbornly high.
Still, even with having to pay more for most things, some goods and services have stayed resilient in the face of rocky market conditions.
Groceries and gas have remained high and pushed new ceilings, but a whole slew of goods have been holding their own against inflation— many of them in categories you likely wouldn't expect.
So if you're looking for a good deal during one of the nation's most expensive environments, a new report might have info that can help you both score a bargain and avoid any buyer's guilt that you may walk away with sticker shock.
So What Isn't More Expensive?
A recent report from Adobe’s Digital Price Index for the month of April confirmed what your grocery store receipts already told you, that every month for the past year has seen a record year-over-year increase.
Regardless, people continue to shop, especially online.
One of the most surprising takeaways from the report is that there are a few categories where prices are actually down these days, compared to a year ago.
So if you’ve managed to save even as inflation rages, that’s a very impressive accomplishment, so maybe you deserve to treat yourself.
What Categories Had A Price Drop?
Adobe’s Digital Price Index is modeled after the Consumer Price Index, and uses a combination of Adobe’s AI, machine learning and expertise to track online prices.
It noted that prices had gone down for two key consumer categories.
1. Electronic prices were down 5.2% year over year in April. This is the largest drop for the category since November 2020. In October 2020, prices were down 6.2% year over year.
“As the biggest category in e-commerce by share of spend, price movements have an outsized impact on overall inflation online,” Adobe’s report notes.
2. Computer prices were down 5.7% year over year, the 16th consecutive month of deflation for the category.
While this is welcome news, it’s actually below the historical levels of year-over-year decreases for the computer category, which actually decreased 9.2% year over over between 2015 and 2019.
Adobe didn’t explain why these two categories saw a drop.
But some economists say that when the cost of essential goods goes up, households will naturally cut back on non-essential purchases.
When demand for any good sees a decrease, prices will often — though not always — fall, in attempt to lure budget-conscious consumers into splurging.
