As inflation continues to throttle back across the broad U.S. economy, some consumer categories have sunk into outright deflation.
In other words: Americans are seeing prices decline for certain items.
Those pullbacks have largely been among physical goods rather than services, economists said.
Demand for goods soared early in the Covid-19 pandemic, as consumers were confined to their homes. The health crisis also snarled global supply chains for those goods. These dynamics drove up prices. Now, they’re falling back to earth.
