Used Cars and Furniture See Deflation, But Inflation Worries Linger for Many Americans
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Deflation is occurring in some durable goods like used cars, furniture, and appliances after inflationary price surges during the pandemic.
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Pockets of deflation could help push overall US inflation closer to the Fed's 2% target.
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Widespread deflation is unlikely but would be a bad sign, indicating weak demand and potential recession.
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Inflation remains above 2% though it is cooling; prices rose 3.2% in November vs a year ago.
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Despite cooling inflation many Americans remain pessimistic as grocery and other prices are still up 20% vs pre-pandemic.