(NewsNation) — Annual inflation fell below 3% for the first time since March 2021 in July but prices for some things — like eggs and car insurance — continued to rise.
According to the latest Consumer Price Index (CPI), eggs and car insurance both cost almost 20% more than they did a year ago. Tickets for sporting events have also shot up about 9% compared to last year.
With that said, the inflation picture looks much better for the most part. Last month, overall inflation was 2.9% year-over-year, a reading that sets up the Fed to cut interest rates in September.
“We’re finally, hopefully, getting to this normalization with a little bit of inflation, a full labor market, and some stabilization in prices across the board,” Investopedia editor-in-chief Caleb Silver told NewsNation’s Elizabeth Vargas on Wednesday.
Although not the norm, some prices have gone down over the past year. Used car prices have dropped about 11% since last year and airfare has become more affordable in recent months.
Here’s which prices are going up and coming down.
Which prices are rising?
Egg prices have surged nearly 20% since last year
- Increase: +19.1% from July 2023 to July 2024
- Current Price: $3.08 per dozen, according to government data
After peaking at $4.82 per dozen in January 2023 due to a bird flu outbreak, egg prices are climbing once again. They now cost nearly 20% more compared to July 2023, according to the Consumer Price Index.
A resurgence of bird flu in the spring is one of the reasons why. Since the start of the outbreak in February 2022, more than 100 million birds have been affected, per the U.S. Department of Agriculture.
Car insurance prices continue to rise
- Increase: +18.6% from July 2023 to July 2024
- Current Price: $194 per month for full coverage, according to Bankrate
The cost of owning a car has soared in recent years and the rising cost of insurance is one of the main reasons.
Sophisticated technology has made repairs more costly, driving up insurance claims. In 2022, the average collision claim was $5,992, up from $3,709 in 2020, according to the Insurance Information Institute.
Another explanation: Cars are safer now and absorb more energy from crashes, which leads to more damage.
Cars have also become more expensive over the years, pushing up the cost to insure them. In July, the average transaction price for a new vehicle in the U.S. was $48,401, according to Kelley Blue Book. Three years ago the average transaction price was $42,736.
Sports tickets are up
- Increase: +8.8% from July 2023 to July 2024
After two years of pandemic doldrums, pent-up consumer demand set off a surge of “funflation,” as Americans flocked to concerts and sporting events. With a limited number of seats and a fanbase craving live experiences, ticket prices swelled.
However, the recent uptick may appear more dramatic because tickets were cheaper throughout 2022. Compared to July 2019, sports tickets were roughly 11% higher last month.
Which prices are falling?
Used cars and trucks are more affordable
- Decrease: -10.9% from July 2023 to July 2024
Pandemic-era disruptions led to a shortage of new vehicles which pushed used car prices up but now consumers are finally seeing some relief. According to the latest Consumer Price Index, used car prices fell to their lowest level in over three years last month.
The average used car was listed for $25,251 in July, down 7% from the year prior, according to Cox Automotive.
A separate analysis this week by Edmunds said the downward trend is a “direct reflection” of dynamics in the new-car market, where rising inventory has triggered more discounts and incentives. Used electric vehicle values have plunged especially fast, falling over 20% from a year ago.
Electronics keep going down in the CPI
- Smartphones: -8.2% from July 2023 to July 2024
- Televisions: -5.4% from July 2023 to July 2024
Consumer price data shows electronics like smartphones and televisions are getting cheaper but that doesn’t necessarily mean iPhones have gone on sale. Instead, it’s a sign technology has improved.
The government tries to measure constant quality over time. That’s easy when you’re comparing apples to apples but it’s much harder to do with ever-changing gadgets like smartphones. To account for tech upgrades, the Consumer Price Index applies a quality adjustment.
As more features get added, the consumer is getting more for their money, even if prices on the shelf stay the same, which is why the CPI tends to show smartphones getting cheaper over time.
Consumers see some relief on airfare
- Decrease: -2.8% from July 2023 to July 2024
After surging during the post-pandemic travel boom in the summer of 2022, airline tickets have started to come back down to earth. Since May, flight prices have dropped roughly 12% and are now down from before the pandemic, according to the CPI.
The average U.S. domestic airfare was $388 in the first quarter of 2024, per the U.S. Department of Transportation. After adjusting for inflation, that’s slightly lower than the $404 average price in the first quarter of 2020.
Consumer demand hasn’t fallen but supply has picked up, leading to lower prices.
“This is a quarter where industry capacity growth exceeded still solid demand,” United Airlines CEO Scott Kirby said on a recent earnings call.