7 Things That Are Finally Getting Cheaper

After months of high prices, pressure is starting to ease in these categories

eggs and bacon on one side and a gas pump nozzle on the other side

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Donna Fuscaldo,

AARP

En español

Published April 17, 2023

Prices for several consumer goods are finally coming down after months of record highs. That’s great news for cost-conscious consumers, who’ve been paying top dollar for everything from eggs to used cars. For March the Consumer Price Index was up 5 percent, marking the smallest 12-month increase since May 2021. Further declines are expected in the months to come as supply chain issues work themselves out and supply-and-demand imbalances improve. That is particularly true of certain food categories that have seen high prices for months.

“Where we are seeing prices fall is primarily in the perimeters of the grocery store,” says Tom Bailey, a senior consumer food analyst at Rabobank. “Produce, dairy, meats and things that are a lot more volatile are coming down. Prices tend to rise and fall more directly with what’s happening in the supply chain. They led prices up and are leading prices down.”

There are several reasons why food prices are improving. Demand is easing as excess pandemic disposable incomes wane, supply chain problems have largely been worked out, and virus outbreaks that hurt egg and poultry supplies are less of an issue now.

Consumer demand is also playing a role in deflation. Bank of America found in a recent report that U.S. credit and debit card spending was at its weakest pace in two years. “This is most likely a response to prices being higher overall and Americans tightening their belts to lessen the blow of inflation,” says Howard Dvorkin, CPA, who is the chairman of Debt.com.

With that in mind, here are seven things that finally cost less.

1. Eggs

Average price: $1.44 per carton

Decrease: Month over month, in March prices are down 11 percent.

An avian flu outbreak earlier in the year hurt egg production, sending prices surging. That, according to Bailey, isn’t a widespread issue anymore, which has improved supply in the marketplace and driven prices lower. It doesn’t hurt that demand for eggs has eased thanks to skyrocketing prices, which is helping prices fall.

2. Butter

Average price: $2.32 per pound

Decrease: Year over year, in March prices are down about 6 percent.

During the pandemic many farmers thinned their herds to make do, which decreased the amount of milk available to churn into butter. Since then, supply has improved and thus prices have fallen. “Butter is down about 6 percent. I’ve been seeing a lot of promo activity around butter,” says Bailey. “Lower commodity prices are also cycling through butter and dairy products.”

3. Lettuce

Average price: $2.85 per pound

Decrease: Month over month, in March prices are down 5.6 percent.

The price of lettuce hit a record high in late 2022 as a virus spread through crops, hurting production. Since then prices are almost 80 percent off their peak, says Bailey. That may be short-lived. Production is moving back to California at the same time that record rainfalls are hurting farmers’ ability to plant. That, says Bailey, could send prices for lettuce back up in the weeks to come.

4. Fresh fruit

Average price: $0.32 to $4 per pound

Decrease: Month over month, in March fresh fruit prices are down 1.5 percent.

The weather is improving and fertilizer commodity prices are dropping, making it cheaper for consumers to purchase fresh fruit, especially citrus fruits such as oranges and tangerines. Citrus fruit prices overall are down 3.7 percent, while oranges are 3.1 percent cheaper.

5. Bacon

Average price: $6.61 per pound

Decrease: Year over year, in March bacon prices are down 5.7 percent.

Prices for bacon soared last year, forcing consumers to find lower-cost alternatives. That has impacted demand, sending prices lower. Ham and hot dogs also got cheaper month over month in March, down 1.6 percent and 1.3 percent, respectively.

6. Used cars and trucks

Average price: $26,510

Decrease: Year over year, in March used car and truck prices are 11.2 percent lower.

Used car and truck prices have been falling ever since the start of the year as supply improves. During the pandemic there was a dearth of new cars, which spilled over into the used vehicle market. With dealers getting more new vehicles in their showrooms, some of the pricing pressures seen in the used car market have been alleviated and thus prices have fallen.

“The leading reason for the drop in used car prices is the increased supply of new cars,” says Dvorkin. “The lack of new car inventory drove up all car prices, and on top of that, the shortages of parts and computer chips stalled new car production in 2022.”

7. Gasoline

Average price: $3.645 per gallon

Decrease: Year over year, in March gas prices are down 17.4 percent.

Gasoline prices have been declining largely because the supply situation has remained stable despite Russia’s invasion of Ukraine, and fears of supply shocks haven’t fully materialized, says Patrick De Haan, head of petroleum analysis at GasBuddy. But they may not stay down for too much longer, given that we are heading into the summer, when demand tends to pick up due to road trips. As the weather gets warmer, refiners also switch to summer blends of gasoline, which have lower vapor pressure, helping to prevent the evaporation of gas in the summer sun. These blends also costs more, which puts further upward pressure on gasoline prices. “In the past few weeks, gas prices have started their seasonal rise, and likely will continue trending up over the next four to six weeks before peaking between mid-May and mid-June or so,” he says.

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Donna Fuscaldo is a contributing writer and editor focusing on personal finance and health. She has spent over two decades writing and covering news for several national publications including The Wall Street Journal, Forbes, Investopedia and HerMoney.