Durable Goods Prices Have Dropped
How about some good news?
Last month, the Commerce Department reported that prices for durable goods were down compared to the year before. Long-lasting items like appliances and cars have fallen year-over-year for several months, and prices are expected to continue to drop. The data indicates that shoppers are spending money on experiences. They’re buying concert tickets and traveling abroad instead of buying new cars, clothing, and furniture. There’s an economic principle involved here in which decreased demand causes prices to drop. The cost of durable goods dropped between 1995 to 2020 before soaring to 11% due to supply chain issues with Covid-19. Unfortunately, many Americans didn’t feel the significance of lower prices because they don’t purchase those goods that often. Nondurables, like groceries and clothing, are still increasing and that’s where the general population feels the pinch. Many are delaying big purchases in order to cover the basics. Plus, they’re concerned about layoffs or emergency expenses.
Whether prices drop or not, continue eliminating your consumer debt. Fund an emergency account and begin saving for appliances and vehicles that you’re going to have to replace in the future. If you have a need now and your budget allows, take advantage of lower prices. When we develop the habit of delaying gratification, we’re often rewarded with good deals! So, be patient, do your research, and stick to your budget, and enjoy the fact that something’s dropped in price!
If inflation is contributing to burdensome credit card debt, let Christian Credit Counselors help you. They’ll create a debt management plan that works! For more information call the Crown Helpline: 800-722-1976 or visit online at crown.org/ccc.