Sunday, December 21, 2008

DEFLATION ARRIVES IN HILO

Our grandparents use to talk about deflation during the 1930's but we haven't experienced it until now.

We have enjoyed unprecedented price drops for our Christmas shopping both online and at local retailers in Hilo, Hawaii. At Macys, clothes and house wares were marked down over 50%. We have never seen prices like this at Christmastime before. As we prepared to do our yearly online Christmas shopping for family on the mainland we were barraged with emails offering discounts of 20% on orders. We held off on the orders to see if the deals would get even better and they did. Some vendors threw in free shipping and others had an additional 10% off.

As we watched oil drop over $110 a barrel (a drop of 74%) our local premium gasoline prices plunged from $4.75 to $2.59 a gallon (a drop of 54%).

Everywhere we look prices are dropping. Used cars, for instance, have been high throughout Hawaii, but they have dropped to some of the lowest prices we have ever seen here. We estimate they are down about 50% from last year.

We believe this Christmas season deflation is just the beginning of a deflationary trend that will make living in Hilo much cheaper for years to come.

1 comment:

larry said...

this is going to be a long up and down and winding roller coaster ride so we had all better strap in but don't forget to raise you hands and have some fun even when we are going down!

and living everywhere will become "cheaper" as long as you have an income :(