Inflation and Deflation: A Regional Analysis

While inflation has been a concern in the US economy, there has been a gradual decline in prices, known as disinflation, and some categories have actually experienced deflation. This deflationary trend is primarily seen in the "goods" side of the economy, where a stronger US dollar has made imported goods cheaper, supply chain disruptions have eased, and manufacturers have shifted production to lower-cost areas. Measurement quirks, such as quality improvements and variations in health insurance coverage, also impact price declines on paper rather than at the store.