Recession-Proof Productsby Tim Manni
US consumer prices rose 0.6% in May, largely due to escalating food and energy prices. Although the price increase was higher than experts predicted, core consumers prices, excluding food and energy costs, rose 0.2% as expected.
While inflation is taking its toll worldwide, there are certain industries that are profiting, and products that have gotten cheaper here in the US.
The US video-game industry grossed $1.12 billion in sales during May, up 37% since last year. Netting $6.6 billion in sales already this year, the US video-game industry has already surpassed 2007’s totals, and is on pace to gross $21-$23 billion by year’s end.
Advances in technology naturally drive down the prices of electronics as the “new” becomes the “old” all too quick. Within the year, low-priced gadgets have seen more than typical price reductions as companies reinvent popular products for lower cost in order to attract buyers.
The average price of a digital camera fell $28 this year. In 2008, Canon produced three digital cameras under $200, the cheapest costing $129, the least expensive camera Canon has ever made. Instead of pricier iPods, customers are opting for cheaper MP3 players. In response, Apple Inc. released two smaller versions of their iPod Shuffle for under $70.
Women’s clothing has gotten cheaper since last year; hotel rooms fell about a dollar on average in April, tickets prices to some theme parks like Six Flag’s have decreased $10 to attract patrons, and toys prices are down 5.3% since last year.