Here’s the deflation breakdown for August 2024 — in one chart
D3sign | Moment | Getty Images
Inflation cooled in August and fell to its lowest level since February 2021, which was around the time the consumer price index began to climb during the pandemic era.
This broad trend in the U.S. economy — a declining but still-positive rate of inflation — is known as “disinflation.” It means that, in aggregate, the average prices of goods and services are rising, just more slowly.
However, there are also pockets of “deflation.” Their inflation rate is negative, meaning prices are falling.
Deflation has largely been happening for physical goods such as cars and household appliances, though it has also appeared in categories such as gasoline and various groceries over the past year, according to the consumer price index.
That said, consumers shouldn’t expect — or root for — a broad and sustained fall in prices across the U.S. economy. That generally doesn’t happen unless there’s a recession, economists said.
‘A huge shift in demand’
Prices for “core” goods — commodities excluding those related to food and energy — have deflated by about 2% since August 2023, on average, according to CPI data.
They fell 0.2% during the month, from July to August 2024.
The dynamic of falling goods prices has largely been due to a “normalization” of supply-and-demand trends that were thrown out of whack during the pandemic, said Stephen Brown, deputy chief North America economist at Capital Economics.
Demand for physical goods soared in the early days of the Covid-19 pandemic as consumers were confined to their homes and couldn’t spend on things such as concerts, travel or dining out. Households also had more discretionary income due to the pullback on spending coupled with federal aid.
More from Personal Finance:
Social Security cost-of-living increase could be lowest since 2021
Why it’s not always ‘a sexy thing’ to be a millionaire
The ‘vibecession’ is ending
“We saw a huge shift in demand, in terms of the type of things people were spending on, where you weren’t going out as much,” said Sarah House, senior economist at Wells Fargo Economics.
The pandemic also snarled global supply chains, meaning goods weren’t hitting the shelves as quickly as consumers wanted them.
Such supply-and-demand dynamics drove up prices.
However, those economic contortions have largely eased and prices have deflated as a result, economists said.
Where prices have deflated
For example, prices have declined by about 5% for furniture and bedding and 3% for appliances since August 2023, according to CPI data.
They’ve also fallen for tools, hardware and outdoor equipment, which are down 3%, toys, down 3%, and apparel, such as men’s suits and outerwear, down 10%, women’s outerwear, down 9%, and footwear, down 1%.
Prices for new and used vehicles have fallen by 1% and 10%, respectively, since August 2023. Car and truck rental prices have deflated about 8%.
Car prices were among the first to surge when the economy reopened broadly early in 2021, amid a shortage of semiconductor chips essential for manufacturing.
Recent declines in car prices are largely due to “the inventory picture being more improved in the overall vehicle space,” House said. Higher financing costs have also reduced consumer demand, economists said.
Outside of supply-demand dynamics, the U.S. dollar’s strength relative to other global currencies has also helped rein in prices for goods, economists said. This makes it less expensive for U.S. companies to import items from overseas, since the dollar can buy more.
Long-term forces such as globalization have also helped, by increasing imports of more lower-priced goods from China, economists said.
Airline fares have declined about 1% over the past year, according to CPI data.
The drop is partly attributable to a decline in jet fuel prices, Capital Economics’ Brown said.
Average aviation jet fuel prices are down about 21% from last year, according to the International Air Transport Association.
Grocery prices have fallen for items such as apples, potatoes, ham, coffee, rice, seafood and bananas, according to CPI data. Each grocery item has its own supply-and-demand dynamics that can influence pricing, economists said.
Other categories’ deflationary dynamics may be happening only on paper.
For example, in the CPI data, the Bureau of Labor Statistics controls for quality improvements over time. Electronics such as televisions, cellphones and computers continually get better, meaning consumers generally get more for the same amount of money.
That shows up as a price decline in the CPI data.
In honor of Black Friday and Cyber Monday, eBike specialist Buzz Bicycles is offering an exclusive discount for Electrek readers on its Centris Class 2 Folding Bike.
Table of contents
Buzz Bicycles is back with an exclusive new deal
Buzz Bicycles has been a mainstay on Electrek for a few years now, as we have covered several of its electric bikes, which suit riders of all skill levels and help them “Buzz through life.” Buzz is an omnichannel eBike brand that prioritizes direct-to-consumerism and has found success in its mission to deliver ultimate transportation solutions at an excellent value for its growing base of eBike enthusiasts.
The company strives to deliver riders a “Wow moment,” which is usually brought on as they feel the pedal assist function kick in. This feature delivers all you need to conquer hills and longer rides while enjoying new adventures with friends.
The Buzz team has utilized decades of industry experience into its portfolio of eBikes, all conceived and designed in Dayton, Ohio. The company, which operates under the United Wheels umbrella alongside brands like Huffy Bicycles, Niner Bikes, and Batch Bicycles, has adopted an ethos that the freedom of riding should be fun and accessible for everyone, no matter what adventure lies ahead.
By leveraging the global presence of its parent company, Buzz Bicycles can make good on its promise to deliver affordable eBikes that are comfortable, powerful, and safe, much like the Centris Folding eBike, which is as versatile and compact as it is fun. The exclusive deal Buzz Bicycles is offering on the Centris makes it even more fun. You can take advantage of it below.
But first, you’ll want to learn about the capabilities of this foldable eBike to truly understand its value, as well as what accessories are available to level up your purchase.
The Buzz Centris is an easy to ride foldable eBike for all
The Buzz Centris is a Class 2 Folding eBike built for comfort and convenience no matter where you take it. At full size, the Centris’ step-through frame offers a low step-over height of just 16 inches, perfect for riders of all sizes, enabling easy transitions from ground to saddle for its riders.
When you’re not riding, the Centris from Buzz Bicycles folds neatly to 34 inches in length and 22 inches in height, making it easy to store at home or to carry in a vehicle on the way to your next ride. Furthermore, the assembled bike only weighs 68 pounds, making it easy to transport.
You can easily navigate tougher terrain on the Centris thanks to the eBike’s 20″ x 4″ knobby tires and front suspension. The bike is powered by a 48V, 500-watt-hour (Wh) battery pack that can propel it to a top speed of 20 mph for an all-electric range of up to 40 miles on a single charge.
Additionally, this folding model from Buzz Bicycles comes equipped with both a front and rear rack, offering versatile cargo-carrying options so you can customize your ride with a variety of Buzz accessories.
Like all Buzz eBikes, the Centris is tested and deemed compliant with the UL2849 standard. This standard covers the entire electric bicycle system, including the motor, battery, controller, and charger, offering the highest safety standards for added peace of mind.
The Centris Class 2 folding bike from Buzz is available in two colors: Gloss White or Matte Black. This $1,199 eBike is currently reduced to $899 – and you can score an additional $200 off with this exclusive promo, but only for a limited time.
With the purchase of any Buzz eBike, including the Centris, you are guaranteed the following:
- 10-year limited warranty (lightweight aluminum frame protected for full 10 years)
- 2-year limited warranty (electrical components covered by 2-year warranty for peace of mind)
- 6-month limited warranty (additional bike components protected by a 6-month warranty)
Are you interested in the Centris from Buzz Bicycles? You’ve come to the right place. Starting today, while supplies last, you can take advantage of an additional $200 off the sale price by using promo code “ELECTREK200.“ That’s a $500 discount in total!
Don’t wait, because this deal only runs through 11:59 PM on December 8, 2024.
We highly recommend perusing Buzz’s entire lineup of products. They are designed for commuters and casual riders, with technology and features that help you quickly feel comfortable riding. If you are new to the world of E-transportation, Buzz Bicycles is the brand for you.
FTC: We use income earning auto affiliate links. More.
With up to 500 km (310 miles) of all-electric range, the new Mercedes eActros 600 electric semi truck was designed for long-haul trucking – and now, it’s officially in production at the company’s Wörth plant in Bavaria.
The electrification of Daimler Truck’s Mercedes line is progressing nicely, with the eActros 300 and 400 models handling drayage and short-haul duties, and the eEconic seeing duty in waste disposal and airport refueling. The addition of the new 600 model expands on that work with a truly capable long-haul solution that will help Mercedes’ customers clean up their operations.
“The start of series production of our eActros 600 is a further proof of our ambition to transform the industry,” offers Karin Rådström, CEO of Daimler Truck. “With a range of 500 kilometers on a single battery charge, our eActros 600 is addressing the long-haul segment in Europe which is responsible for two-thirds of CO2 emissions from heavy road freight. Our battery-electric long-haul truck will therefore make a real difference.”
In addition to the 600’s additional range, the newest eActros marks another milestone by becoming the first electric Mercedes semi to be manufactured on a single line (the eActros 300/400 and eEconic leave their standard production lines to have their electric drive components installed at Mercedes’ Future Truck Center in Wörth).
“With the start of series production of the eActros 600, we are expanding our Wörth product portfolio with an important vehicle for the future,” says Andreas Bachhofer, Head of the Wörth site and Production at Mercedes-Benz Trucks. “Construction of this first battery-electric truck made in Wörth will be fully integrated into the existing assembly hall, flexibly alongside the manufacturing of combustion-engine trucks. This means that we are ideally positioned for the production of larger quantities. Our production team is well prepared for the successive ramp-up over the coming months.”
The new electric semi truck features a 600+ kWh battery (hence, eActros 600) that sends power to a new, highly efficient electric drive axle developed in-house by Mercedes-Benz, good enough to “be able to travel significantly more than 1,000 kilometers per day. This is made possible by intermediate charging during the legally prescribed driver breaks – even without megawatt-charging.”
The company claims the massive, 600 kWh battery in the eActros can be charged from 20 to 80 percent in about 30 minutes at a megawatt charging station, which will soon (?) be available across Europe. First deliveries of the new 600 series Mercedes electric semi trucks are expected to begin Q1 of 2025, with production ramping up to full speed soon after.
Electrek’s Take
Electric semi trucks are racking up millions of miles as more and more pilot programs being to pay off, leading to more orders for battery electric trucks and more reductions in both diesel demand and harmful carbon emissions. We can’t wait to see more.
SOURCE | IMAGES: Daimler Trucks.
FTC: We use income earning auto affiliate links. More.
Ben Maclean is the 24-year-old owner of a land reclamation business called Down to Earth Developments that specializes in transforming unusable or degraded land into more productive plots that can be put to residential or agricultural use – and Ben is using these hybrid machines to make reclamation an even more sustainable enterprise.
Maclean is bucking the trend of young people avoiding construction and agriculture and making a name for himself throughout the UK. Soon after becoming the youngest customer to order one of Caterpillar’s first D6XE electric dozers earlier this year. Ben was so impressed with the big electric drive CAT that he ordered another one.
It’s just arrived – and Ben seems pretty excited about it.
“It’s not just the electric drive using less fuel, but the all-round technology package you get with CAT machines that saves costs in quite a few ways,” explains Maclean. “We also have two CAT 323 hydraulic excavators and their grade assist and payload technology help us get the job done that little bit quicker.”
The electric drive CAT machines operate much the same way that range-extended EVs (or “EREVs“) do. Onboard batteries send power to electric motors while an ICE generator works to keep them topped off. The arrangement delivers superior power, torque, and control compared to diesel drive, with a 35% improvement in fuel efficiency and, according to CAT, 20% fewer harmful carbon emissions compared to the conventional 3 speed D6T Tier 4 Final.
“Sustainability is quite literally what they do,” says Ryan Trafford, manager at CAT’s UK distributor, Finning. “Customers like Ben are the first generation to have grown up understanding the importance of making responsible decisions, with sustainability being at the heart of that.”
Here’s hoping more young people bring their sustainable priorities to the various trades as they come up.
CAT D6XE electric drive dozer
SOURCE | IMAGES: Down to Earth Developments.
FTC: We use income earning auto affiliate links. More.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports8 months agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway