NEW YORK (MainStreet)Every year we see prices go up on just about everything, and with the pace of U.S. consumer price inflation increasing in July, the annual inflate rate jumped to 2%. But some things have bucked the trend, with sticker prices rising slower than other goods or even declining over time.
There are a lot of factors behind trends in pricing, many unique to a particular market or segment Those unique factors have caused prices to stay pretty flat in a few niches of the market, which has been a benefit for consumers struggling with other costs. Here are five categories of goods that have defied inflation for the past few years--and it's our sense of whether that trend will continue.
Remember the '90s, when the newest CD cost over $20? Those days are probably never going to come back.
Instead, music is probably going to get cheaper and cheaper, according to Zac Johnson, product manager for Allmusic.com. "As technology makes music more accessible, I could see the trend of music getting cheaper and cheaper both to produce and to make," Johnson says, noting that this trend has been underway for years. With singles rarely going for more than $1.29 and albums costing between $9.99 and $12.99 on iTunes, music is cheaper than ever, especially if you compare it to the rising cost of other goods.
Technology has made it much cheaper to produce and distribute music, which has kept the price for music low throughout the aughts, but Johnson thinks that we could see music get even cheaper and near free in the future. "You could see more bands releasing new albums as a kind of loss leader to create buzz," Johnson said. "Then they can use that buzz to sell concert tickets and T-shirts."