Inflation is still stretching American budgets, but some items are becoming cheaper.
Shopping this holiday season might not be all that painful after all. Inflation is still stretching American budgets, but the cost of some items is thankfully on the downswing. Here’s what you can expect from this holiday deflation and where you’ll be able to save some money this year. Spoiler alert: If you’re shopping for kids, you’re in luck.
Why are prices falling?
Retailers are offering big discounts on some goods. That’s partly because they’re still desperate to clear out their excess merchandise. Fearing the shortages at the outset of the pandemic, many chains miscalculated. They stocked up on goods anticipating consumer demand would remain strong — and are now stuck with a surplus.
What items are getting cheaper?
Parents and grandparents, rejoice! The price of toys fell 1.4 percent last month and 1.1 percent in October. And although the average price of goods in the U.S. is up 7.1 percent compared to last year, according to recent figures from the Bureau of Labor Statistics, the cost of toys only rose 0.6 percent annually. The cost of children’s shoes is also down: In November, it dropped 0.7 percent, and it fell 1.2 percent in October. Apparel for kids is becoming more affordable, too. Last month, the price of girls’ clothes fell 2.2 percent, while boys’ clothes became 0.4 percent cheaper.
You should also be able to find a good deal on women’s coats and jackets: Outerwear dropped a further 1.3 percent last month after a 3.8 percent decline in October. Compared to last year, women’s outerwear is down 2 percent. And if you’re looking to gift a bottle of wine this holiday, here’s a positive trend: The cost of vino dipped 0.2 percent last month.
What about your holiday meal?
Grocery store prices are still pretty high, unfortunately — up 12 percent compared to last year, according to BLS statistics. The cost of poultry rose 13.1 percent over the last year — but appears to be slowly leveling off. Prices dropped 0.8 percent last month and 1.1 percent the month prior.
And we’ve got some bad news for those of you with a sweet tooth: Cakes, cookies, and cupcakes are up a whopping 17.6 percent annually.
So if you’re stocking up on pre-made dishes for your holiday meal, you might want to consider cooking or baking them yourself this year.
