According to data from the Bureau of Labor Statistics, the cost of common products and services increased by 2.5 per cent between January and November. For the same period, that represents a decrease from 3.1% in 2023 and 6.4% in 2022 and 2021. Even while incomes are growing faster than inflation and prices may not be rising as quickly as in previous years, neither the kitchen table nor the bank account will be happy about this. There has been a cumulative impact from the once-in-a-generation inflation occurrence. However, in an era of positive news and new beginnings, it is worthwhile to highlight some of the price-related “wins” of the previous year, their history, and the prospects for the future.
Fuel oil (oil for home heating)
There are increasingly few bright spots when it comes to energy expenses. However, in 2024, falling crude prices contributed to a sharp decline in household heating oil prices as winter approached. For many Northeasterners, Alaskans, and others who are among the 4% of Americans who heat their houses with fuel oil, a roughly 17% price reduction from the previous year should be great news. It’s not that simple, though, like the majority of things pertaining to living expenses.
First, the steep price decline is relative: US Energy Information Administration data dating back to 1990 shows that prices touched a record high in November 2022. Additionally, according to CPI data, they have increased by 27% since the pandemic began. Additionally, other factors, including as weather, usage, and energy efficiency, affect the final price that consumers pay, according to Mark Wolfe, executive director of the National Energy Assistance Directors Association.
Gasoline
While gas prices are a very apparent indicator of price trends, they are also extremely volatile and essential to many facets of life and business. Additionally, Americans get a small relief at the pump in 2024. US oil prices are still above $70 per barrel, despite the protracted conflict between Russia and Ukraine and the persistent concerns in the Middle East. The 2022 rise above $120 per barrel following Russia’s invasion of Ukraine is a far cry from that. According to GasBuddy, the national average will fall from $3.33 this year to $3.22 in 2025, the business told CNN.
However, Lauren Saidel-Baker, an economist at ITR Economics, told CNN recently that gas prices may be as erratic as gasoline is flammable and that geopolitical risk is still high. Going future, [gas prices] may be impacted by these non-fundamental economic issues, she stated.
Technology for consumers
According to Rick Kowalski, senior director of business intelligence at the Consumer Technology Association, technology has always been a deflationary product. He cited several reasons, including the fierce competition in the technology sector, growing economies of scale, and Moore’s Law, which indicates that circuits and semiconductors get more efficient every year.
The prices of most consumer tech products stayed below core inflation, even during the pandemic when inflation was raging throughout the economy,” Kowalski stated. Indeed, according to BLS data, the CPI’s information technology commodities index has decreased by more than 26% since February 2020.
