As we inch closer to the start of summer and a popular vacation time for families, there's a new sign that inflation is easing — and it comes in the form of falling prices.
According to the Bureau of Labor Statistics, inflation dropped to 2.3% in April, the lowest in four years. That's thanks to big price cuts on items like eggs, clothing, and even used cars.
Egg prices plunged at their fastest rate since 1984, while airfare dropped almost three percent. Ticket prices for sporting events fell more than 12 percent — the biggest one month drop on record.
There is a catch, though. Economists say some of these price drops might be a warning sign instead of a win, calling them "telltale signs of consumer stress." Lower prices for travel and entertainment could signal weak demand, with experts noting consumers are hesitating.
Google searches for flights were down last month. Delta and American Airlines have cut their outlooks, citing slowing travel and economic uncertainty. According to the U.S. Department of Commerce, international air travel to the U.S. is down 2.5% this year alone. Falling oil prices have helped push down gas and ticket costs, but economists still warn this could be the calm before the storm, noting trade tensions and tariffs could push prices back up in the months ahead.
Falling oil prices are also contributing to lower prices paid at the pump when filling up. The average cost of gasoline in Louisiana has fallen 2.7 cents per gallon over the last week, averaging $2.64 per gallon, according to GasBuddy's most recent survey of more than 2,400 gas stations. Prices are down 12.1 cents per gallon compared to a month ago, and 47.1 cents lower compared to a year ago.
According to GasBuddy, as of Thursday morning, the cheapest places to find gas in Acadiana are Duson, Breaux Bridge, and New Iberia, averaging $2.37 per gallon. Further west in Lake Arthur, prices were also reported low at $2.49.
It's not just oil and gas. OpenTable reports restaurant reservations were up 10 percent in April year over year, and prices for sit-down meals actually rose.
While prices are offering some relief at this time, experts say they may also be masking deeper concerns about where the economy is headed.
