Dec 9, 2008 11:30 pm US/Eastern
Alert! Alert! Holiday Prices Plummeting
Everything From Toys To Electronics To Cars Are Down -- Sometimes Significantly -- Since This Time Last Year
NEW YORK (CBS) ―
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Disney's Hannah Montana doll and playset were among the hot new toys at this year's Toy Wishes Expo.
Gregg Geller/CBS
It seems we're paying more for just about everything these days. But the cost of seven consumer goods and services has decline sharply, hopefully providing you with some relief this holiday season.
If toys are topping your kid's Christmas list, you're in for some fun and games at the store right now. Toy prices have dropped almost 45 percent.
"Look at Hannah Montana," said Marshal Cohen of the NPD Group. "One of the best selling dolls right now for $5."
Cash-strapped consumers say they're tired of rising costs.
"Food, books, school-wise," said Roxanne Barnes of the Bronx.
"Basically, I've seen prices going up everywhere. It's crazy out there," said Caroline Esquinca of Clifton, N.J.
But now there is some good news. From children's' toys to adults' the federal government recently identified seven groups of products in which prices have actually dropped -- and sharply -- over the last 10 years.
"This rumor of everything costing more money is not true," Cohen said.
Retail analyst Cohen says outsourcing, fierce competition and a change in consumer attitude have contributed to price declines. One of the biggest group of items you can save on is electronics.
"A printer today that was $150 last year, is $50 this year," Cohen said.
Price tags on televisions are also down by 78 percent. Computer costs have dropped 88 percent, while items like videocassettes, DVDs and movie rentals are 20 percent cheaper.
"In the fashion industry we've certainly seen price deflation really kick in gear," Cohen said.
Cohen says we're also dressing for a whole lot less. The cost to clothe your family has dropped by 11 percent, while the price of footwear has declined by almost 4 percent.
"We've seen cashmere from just four years ago averaged over $300 a sweater to now you can buy it for under $20," Cohen said.
Rounding out the list, cell phone services cost nearly 32 percent less than they did 10 years ago. The price of a watch is down more than 6 percent and a new car will cost you almost 7 percent less.
But the news is not all sunny. Experts say quality has declined with some products in order to keep making a profit.
Experts say expect prices on these goods to drop even more in the new year.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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