Cheaper imports don’t help Americans a lot
The more affordable cost of imported products has definitely given American customers a break, though inflation keeps surging much faster for major services, including healthcare, rent, not to mention enormous household expenses.
Dipping import prices tied to a stronger greenback might help consumers to purchase more Italian Parmesan cheese or shell out less on a good BMW vehicle. However, the vast majority of US-made goods and services won’t probably become more affordable.
A new study conducted by the New York Federal Reserve revealed that only large American companies are used to cutting their prices when imported products become less expensive, and they don’t offer significant discounts. These goods actually account only for a relatively small portion of a typical US consumer’s household expenses. This explains why a great number of Americans is much higher than the government’s data officially states.
Import prices has been falling for two years. For the last twelve months, they dropped 2.7%. Nevertheless, the price of many American consumer services and goods keep soaring at a greater pace.