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Cell phones, furniture, used cars: Here's where prices are easing up as inflation cooldown continues

Molly Moorhead

Updated Wed, Sep 11, 2024 3 min read

Americans plagued by rising prices the past three years got another promising sign on Wednesday as inflation hit a three-year low.

The Consumer Price Index (CPI), a broad measure of the price of everyday goods, including groceries, gasoline, and rent, rose 0.2% in August over the previous month, in line with economists' expectations. Prices rose 2.5% compared to a year ago — the lowest annual reading since early 2021.

Here’s what the Bureau of Labor Statistics' latest inflation numbers mean for your household:

Restaurant meals surge, along with some groceries

The cost of eating out isn't easing up. The "food away from home" index rose 4% annually as overall food inflation inched up just 2.1%. Even food from a vending machine was 4% higher than a year ago.

Overall grocery prices are easing up. The grocery index ticked up just 0.9% annually and was flat compared to July.

Some items posting the largest cooldowns were coffee, ham, potatoes, rice, and apples.

But a few foods remain stubbornly high. Eggs, which saw huge pandemic price surges, were up 4.8% compared to July and 28.1% from a year ago.

Frozen juices and drinks jumped more than 18% year over year, and beef products keep getting pricier. Ground beef rose 4.9% from a year ago, steaks were up 1.6%, and roasts surged 6.7%. According to data from the Federal Reserve Bank of St. Louis, that translated to an average of $7.63 per pound for uncooked beef roasts.

Inflation cools on cell phones, TVs, used cars, and more

The sting of surging prices should feel like less of a bite on several common purchases. Of note:

The price of used cars, notoriously steep during the pandemic, slowed 1% in August, following a 2.3% decrease in July. The index for used cars is down nearly 11% year over year. Car and truck rentals were down more than 6% compared to 2023.

Various household goods showed cooldowns. Furniture, major appliances, and even everyday items like dishes and tableware all posted significantly slower price growth compared to August 2023.

Cell phones were down more than 8% year over year. TVs: almost 6%. Smart home devices declined 2%, and the index for airfares was 1.6% below last year — but ticked up almost 4% month over month as the fall travel season kicks off.

Auto insurance keeps surging while gas prices drop

Car insurance costs haven't been this bad in 47 years.

The price of auto insurance was up 16.5% since last August, a pain felt nationwide. The monthly index ticked up 0.6%.

Three consecutive years of underwriting losses mean insurers have paid out more in claims and expenses than they took in through the premiums we pay — leading to the steep hikes felt today.

Owning a car has generally become pricier. Motor vehicle maintenance and repair costs increased 4.1% year over year. Meanwhile, parking fees and tolls were nearly 5% higher than in August 2023.

But there was good news at the gas pump.

The gasoline index fell 0.6% on a monthly basis and was 10.3% lower than a year ago. As of Sept. 11, the national average for gasoline was $3.25 per gallon, about $0.20 lower than a month ago, according to AAA data.

Senior care, other health costs continue to rise

Though inflation is easing overall, costs borne largely by seniors have been slower to cool.

Home healthcare for elderly or disabled family members eased slightly month over month but was still more than 7% higher than a year ago, the BLS found.

Hospital and related services were 5.8% higher than a year ago. Meanwhile, prescription drug costs grew by 2% while over-the-counter medications were up 2.4% annually, though both indexes were slightly lower compared to July.