People line up at Departures Gates at Los Angeles International Airport.
Daniel Slim | AFP | Getty Images
Although inflation has yet to fall to policymakers’ target levels, we have found prices have been falling recently in the pockets of the US economy.
Consumers have seen prices shrink due to airfares, produce, household goods, electronics and gasoline, for example. (Deflation occurs when prices drop, while prices continue to increase, but slower.)
“There are many singular factors that affect a particular category,” says Ryan Sweet, chief economist at Oxford Economics. “In the end, it’s supply and demand that affect prices.”
Of course, some categories are volatile and have extreme price revolving. This means that price drops could quickly reverse. Tariffs also threaten to shake up photos, putting upward pressure on many consumer prices.
“We’re excited to see the world of exploring the world,” said Mark Zandy, chief economist at Moody’s. “I think they’ll be separated pretty quickly in the coming weeks and months.”
Here is the area where consumers are getting a little less stressful in their wallets these days.
gasoline
President Donald Trump claimed in a social media post Friday that drivers’ gas prices were immersed in $1.98 per gallon. However, that claim is not true. According to the US, the average retail gas price is over $3 per gallon. Energy information management.
However, prices have fallen significantly over the past year.
According to the latest CPI data, gasoline prices have fallen by almost 10% from a year ago. They fell by about 6% on a seasonally adjusted basis from February to March, data show.
Because gasoline is refined from oil, oil prices place a major burden on the prices consumers pay at the pump.
Crude oil prices have fallen sharply. For example, futures prices at West Texas Intermid, a US oil benchmark, have fallen 22% over the past year.
Low prices indicate fear that the US economy is slowing down. Meanwhile, a group of oil producers known to OPEC+ agreed to raise production over the weekend and weaken prices amid a significant supply.
“Prices cannot be much lower for a very long time [oil] Producers will start pulling back production,” Zandi said.
Airline fares
Zandi said the decline in oil prices has been passing through many other parts of the economy.
Airline fares are just an example, the economist said.
According to CPI data, ticket prices have fallen by more than 5% from a year ago. They fell about 5.3% in the month from February to March.
Jet fuel is the main input cost of airlines. According to the International Air Transport Association, jet fuel prices had fallen by about 15% per year by April 25th.
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Freight rates are also under downward pressure, particularly as travel demand from international tourists to the US is declining. Economists say.
According to the American Travel Association, international visits to the United States fell by about 14% in March 2025 from the previous year.
The international community is wary of travel to the US due to tensions caused by the US-initiated trade war and the territorial declaration from the White House about the possibility of Canada becoming the 51st state or Greenland’s acquisition, economists said. People also fear the threat of being detained when they enter the country, according to the Economist.
Produce
Farm workers carry jars with tomatoes to Immokrey, Florida.
Eva Marie Uzkatei of the Washington Post via Getty Images
Prices are falling sharply for produce such as tomatoes, lettuce and potatoes.
For example, tomatoes have fallen by about 8% over the past year, according to CPI data. The lettuce and potato ones pulled back about 5% and 2%, respectively.
Reducing the costs of diesel fuel — and furthermore, reducing transportation costs from farms to grocery store shelves helped, economists said.
There are also seasonal supply and demand factors, they said.
“The supply of tomatoes is increasing as Florida harvest is on track,” wrote Brad Rubin, sector manager at Wells Fargo Agrifood Institute, in an email. “There are also plenty of Mexican spring harvests, including round, Roman and snack tomato varieties.”
But tomatoes imported from Mexico will face new tariffs that begin in mid-July, after the Trump administration withdrew from trade agreements between the two countries.
Lettuce crops have moved to Salinas, California for spring, and the harvest has “a rich yield and high quality,” Rubin writes. Crops generally transition to Yuma, Arizona from November to April, but “production challenges” have risen to prices throughout the winter, he writes.
TVs, smartphones, and other products
According to CPI data, TVs and smartphones have fallen 9% and 14% over the past year. They each fell by more than 1% in the month from February to March.
It is common for businesses to shrink prices for appliances, as they can generally produce products like televisions and iPhones more efficiently over time, Sweet said.
“The flat screen TV I bought five years ago is much cheaper if I’m out today,” he said. “That’s normal.”
Technology is constantly improving. This means that consumers get more for their own money. The Bureau of Labor Statistics, compiling CPI data, treats these quality improvements as a drop in price, giving the illusion of a falling price on paper.
The reason for the price drop in other categories can be somewhat difficult to pin, the economist said.
For example, certain household items such as cooking, tableware, sports equipment, and toys have fallen in prices by around 11%, 5% and 2% respectively over the past year. Similarly, segments in the clothing market, such as infants and toddlers, fell by 4%.
Apparel, for example, can be “very seasonal,” Sweet said.
“It could be the weather or the timing of a certain holiday,” he said. “All of that can throw loop apparel prices.”
The potential explanation was a retailer who attempted to stockpile certain items in anticipation of tariffs.
