Does it feel like deflation to your household personally?
I keep reading how its deflation we are in now, to be followed by inflation from all the money being printed.
However, with the exception of the price of gas at the pump, everything I buy for daily needs seems just as expensive as it did 6 months ago. My utility bill is the same, health care costs up, mortgage same (I’m in a 30 year fixed.) Yes, I could probably buy another house at bargain basement prices, but I already have one and cannot afford another.
Bread still $4 loaf, organic milk $6.50 a gallon. Just bought a woodstove, and it definitely was not on sale. Perhaps it is just plastic pumpkins that have deflated price-tags and all things of real value are still selling at a premium. Of course some prices are probably still coasting on the fumes of $150 barrel oil, but by the time cheaper commodity prices might effect the cost of bread in my grocery store, the prices will probably be on the way back up anyway. Guess I wil go back to baking my own bread.
What have you noticed?
Think of all the great sales in this holiday season. I just bought a high tech coat made in China for one third of what they expected to sell it for. I believe that you would have to include these price reductions as deflationary. What do you think?
I don’t see much signs of deflation aside from gasoline. Food prices might have declined slighting in my area, Colorado. I also don’t shop though, for the things that probably are deflating first, consumer goods, electronics, clothing, etc. (I’m dying to know which store the employee was talking about in Chris’ recent post on households paying down debt was…) I do plan to start looking more closely at ads to see if I should be stocking up on kids winter boots, kids clothing in general, etc…
I want to buy a chest freezer, replacement energy efficient windows and insulating blinds and a wood stove and I’m not seeing signs of any significant price declines there. Interestingly enough, my local woodstove dealer isn’t able to sell any til March because the company he sells has sold it’s entire allotment of the year and can’t get extra steel to manufacture more, or so he says. (Quadrafire is his brand). So we’ll wait until spring, I suppose to get the stove.
Not at all….
Property Tax Bill (rate has increased for next year because valuations decreased)
Water (2 years of increases already and now an emegency increase for January as apparently people stopped watering lawns and otherwise conserved so rates must now skyrocket to cover costs-I guess firing people not an option)
Natural Gas Increased
Food (had increased significantly but has been stable at the increased prices for 4 weeks)
Clothing and Christmas items are on sale early as stores try to move inventory but I haven’t noticed any deals available I haven’t been able to find at after Christmas sales in previous years.
Income Stagnant (actually decreasing due to inflation in above)
I wish I could get my basic needs for the same price as I did 6 months ago.
Can of Green beans (no name brand) 1 year ago: $0.42, 6 months ago: $0.50 and now $0.55 One year increase of about 30%, so inflation may be slowing down a bit now but not stopping.
Water has gone up 20% in my area.
Bread has gone up %50 (2 dollars a standard loaf to 3 dollars).
Bag of dry beans $1.00 to $1.26, a 26% increase.
Bananas have gone up from $0.49 to $0.59 per pound.
3 pound bag of apples has gone up from $2.99 to $3.99.
My pay increased 1.5% in the same year.
25% up comparied to 1.5% up, yep deflation is here. NOT
Except for gas, it doesn’t feel like deflation to us 🙁
Although sometimes a sale on a particular item is lower than it has been on other sales… a sale on ground beef here is usually 1.99 a pound, and yesterday I saw it for 1.79 a pound. Only when on sale, though.
EVERYTHING in EVERY store in the USA arrived there on a truck. Gas has come down in price, but for reasons I don’t understand diesel has not come down as much in price–10 years ago diesel always seemed to be about the same price as regular unleaded, but that’s no longer true.
It seems to me that life’s neccessities (food, water, electric, etc.) have not come down, but prices on most discretionary items are falling. You think the sales at the mall & at electronic stores are good now?! Just wait & see what 2009 brings!
We are a family of 4 living in Indianapolis. The obvious one – Gas is way down, and my wife reports a small but noticible decrease in her weekly grocery run. We have not been scientific in this analysis. We have noticed quite a few sales on big ticket items, cars, trucks, luxury items at thousands off, and businesses willing to drop 20% more for cash deals. A car dealer here was selling cars at 2 for 1 – buy a "Loaded" Truck or SUV or Hummer and get a free Chevy Cobalt or similar small car for free. (But I think you still pay tax on the freebe)?? Anyway deflation is here for luxury items but not for things we need or use every day. I plan to take advantage of this and do some needed updates to our home.