(NewsNation) – Annual inflation fell below 3% in July for the first time since March 2021, but prices for some things – like eggs and auto insurance – continued to rise.
According to the latest Consumer Price Index (CPI), eggs and car insurance are almost 20 percent more expensive than they were a year ago. Tickets for sporting events have also become about 9 percent more expensive compared to last year.
Still, the inflation picture looks much better overall. Last month, headline inflation was 2.9% year-on-year, a figure that prompted the Fed to cut interest rates in September.
“We’re hopefully finally getting closer to that normalization with a little bit of inflation, a full labor market and some stabilization of prices across the board,” Caleb Silver, editor in chief of Investopedia, told NewsNation’s Elizabeth Vargas on Wednesday.
Although this is not the norm, some prices have dropped in the last year. Used car prices have dropped about 11% since last year and airfares have become more affordable in recent months.
Here you can see which prices are rising and falling.
Which prices are rising?
Egg prices have risen by almost 20% since last year
After peaking at $4.82 per dozen in January 2023 due to an outbreak of bird flu, egg prices are rising again, and are now nearly 20% more expensive than July 2023, according to the Consumer Price Index.
One reason for this is a renewed outbreak of bird flu in the spring. Since the outbreak began in February 2022, more than 100 million birds have been affected, according to the US Department of Agriculture.
Car insurance prices continue to rise
- Increase: +18.6% from July 2023 to July 2024
- Current price: $194 per month for comprehensive insurance, according to Bankrate
The cost of owning a car has risen sharply in recent years. One of the main reasons for this is the rising cost of insurance.
Thanks to sophisticated technology, repairs have become more expensive, driving up insurance claims. According to the Insurance Information Institute, the average collision claim in 2022 was $5,992, up from $3,709 in 2020.
Another explanation: cars are safer today and absorb more energy in accidents, which leads to greater damage.
Cars have also become more expensive over the years, driving up the cost of insuring them. In July, the average transaction price for a new car in the U.S. was $48,401, according to Kelley Blue Book. Three years ago, the average transaction price was $42,736.
Sports tickets are on the rise
- Increase: +8.8% from July 2023 to July 2024
After two years of pandemic-induced slump, pent-up consumer demand sparked a wave of “funflation” as Americans flocked to concerts and sporting events. With seating limited and fans craving live experiences, ticket prices soared.
However, the recent uptick may seem more dramatic, as tickets have been cheaper throughout 2022. Compared to July 2019, sports ticket prices were about 11% higher last month.
Which prices are falling?
Used cars and trucks are cheaper
- Reduce: -10.9% from July 2023 to July 2024
Disruptions during the pandemic led to a shortage of new cars, driving up used car prices, but now consumers are finally seeing some relief. Used car prices fell to their lowest level in over three years last month, according to the latest Consumer Price Index.
According to Cox Automotive, the average price for a used car in July was $25,251, down 7% from the previous year.
A separate analysis from Edmunds this week said the downward trend is a “direct reflection” of dynamics in the new-car market, where rising inventories have led to more discounts and incentives. Used electric vehicle values have plummeted particularly quickly, falling more than 20% year-over-year.
Electronics continues to record declining consumer price index
- Smartphones: -8.2% from July 2023 to July 2024
- TV: -5.4% from July 2023 to July 2024
Consumer price data shows that electronics products such as smartphones and televisions are getting cheaper. But that doesn’t necessarily mean that iPhones are coming to market. Rather, it’s a sign that technology has improved.
The government is trying to measure consistent quality over time. This is easy when comparing apples to apples, but it is much more difficult with constantly changing devices like smartphones. To account for technological improvements, the Consumer Price Index makes a quality adjustment.
As more features are added, the consumer gets more for their money, even if prices on the shelf remain the same. This is also why the Consumer Price Index (CPI) tends to show that smartphones are getting cheaper over time.
Consumers see relief in airfares
- Reduce: -2.8% from July 2023 to July 2024
After rising sharply during the post-pandemic travel boom in summer 2022, airline ticket prices have come back down to earth. Since May, airfares have fallen by about 12%, according to the Consumer Price Index, and are now below pre-pandemic levels.
According to the U.S. Department of Transportation, the average domestic airfare in the U.S. was $388 in the first quarter of 2024. Adjusted for inflation, that’s slightly lower than the average price of $404 in the first quarter of 2020.
Consumer demand has not declined, but supply has increased, leading to lower prices.
“This is a quarter in which industry capacity growth exceeded still solid demand,” United Airlines CEO Scott Kirby said on a recent quarterly earnings call.
