October 2023: A Visual Guide to Price Drops
Inflation in the US continued to moderate in October, but some areas of the economy are experiencing deflation, where prices are actually falling. This is mainly happening in the "goods" sector, driven by a strong US dollar making imported goods cheaper and supply chain disruptions easing. Energy prices have also declined, contributing to the overall deflationary trend. However, it is uncertain how broadly prices will continue to drop, as retailers are generally reluctant to cut prices. Measurement quirks, such as quality adjustments made by the Bureau of Labor Statistics, also affect price calculations, making it difficult for consumers to see actual price drops at the store.