Inflation in the United States seems to be showing signs of slowing down, with some prices even dropping to 2020 levels. According to data from the Bureau of Labor Statistics, prices in about half of the spending categories tracked for the Consumer Price Index (CPI) fell from May to April, a larger share compared to the previous timeframe of April to March.
Some of the most significant declines were observed in categories such as 'other condiments' (including dips, baking powder, chocolate chips, vinegar, etc.) which saw a decrease of 6.1%, gasoline prices dropped by 3.7%, and airline fares were down by 3.6%.
While monthly data can be volatile, the trends are also reflected in more long-term data. As of May, additional categories like women's outerwear and public transportation are showing lower prices compared to February 2020.
Notable decreases in prices have been observed in items such as televisions (down by 22.6%), toys (down by 6.7%), and airfares (down by 4.7%). However, it is important to note that only 6% of the CPI categories are currently lower than the pre-pandemic benchmark.
These price decreases may provide some relief to consumers who have been facing rising costs in recent months. It will be interesting to see how these trends continue to evolve in the coming months and what impact they may have on overall inflation rates.
