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5 Things Getting Cheaper Despite Inflation
Gas prices may be soaring but some costs have actually fallen over the past year
No doubt about it: Inflation has risen at its fastest rate in 40 years. The Bureau of Labor Statistics says the Consumer Price Index (CPI), the government’s key measure of inflation, jumped 7.9 percent in the 12 months ended February 2022. The soared 38 percent, used cars sped up 41.2 percent and food at home rose 8.6 percent.
Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. Not everything goes up at the same time, however. Some items even fall in price while others rise. Although they’re not many — and not likely to be a big part of your budget — here are some segments of the CPI that have actually fallen during the past 12 months. 1 School lunches -53 3 percent
The federal government expanded the school lunch program as part of the effort to help those hurt most by the coronavirus pandemic. The Families First Coronavirus Response Act of 2020, signed in March of that year, authorized special waivers for school lunches and allowed schools to distribute meals at drive-through sites. Entertainment $3 off popcorn and soft drink combos See more Entertainment offers > Those waivers could end June 30, as pandemic measures wind down. If Congress does not extend the provision, the schools would receive an average of $2.91 per meal served, compared with $4.56 per meal during the pandemic, according to an estimate by the U.S. Department of Agriculture. When the pandemic measure ends, more students will have to pay more for their lunches, and by midsummer, school lunches could wind up near the top of the list of the biggest price increases. 2 Video equipment -2 7 percent
Equipment that has been supplanted by newer technologies typically declines in price, even though it may well produce excellent results. Looking for a videocassette player? A disk player? You can generally get them reasonably cheap — and, most likely, even cheaper next year. AARP Membership — $12 for your first year when you sign up for Automatic Renewal Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. and retailers will often go out of their way to avoid cost increases. Mask wearing has also hurt demand for beauty supplies. In addition, some well-known brands are offering big discounts to make up for lost in-store sales. 5 Wireless telephone services -0 4 percent
Even though the U.S. wireless telephone market is dominated by three companies — AT&T, Verizon and T-Mobile — competition in the sector has managed to push down prices a bit. From 1997 to 2022, the cost of wireless service fell 51.9 percent, an average annual decline of 2. 9 percent. Although the decline has slowed in the past 12 months, it’s still relatively cheaper to have wireless service, and even cheaper if you . John Waggoner covers all things financial for AARP, from budgeting and taxes to retirement planning and Social Security. Previously he was a reporter for Kiplinger’s Personal Finance and USA Today and has written books on investing and the 2008 financial crisis. Waggoner’s USA Today investing column ran in dozens of newspapers for 25 years. AARP Membership — $12 for your first year when you sign up for Automatic Renewal Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. More on money AARP Membership — $12 for your first year when you sign up for Automatic Renewal Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. AARP VALUE & MEMBER BENEFITS See more Health & Wellness offers > See more Flights & Vacation Packages offers > See more Finances offers > See more Health & Wellness offers > SAVE MONEY WITH THESE LIMITED-TIME OFFERS