Sector Inflation Comparison: 1990–2025
Sector price changes 1990–2025 vs. general CPI inflation
| Sector | 1990–2025 Nominal Change | General CPI Change | Real Price Change |
|---|---|---|---|
| Computing (CPU speed/dollar) | −99.9% | +136% | Massive deflation |
| Consumer electronics (TVs) | ~−80% | +136% | Strong deflation |
| Internet/communications | N/A (didn’t exist) | N/A | Effectively deflationary per unit |
| Healthcare | +400%+ | +136% | +113% above inflation |
| College tuition | +600%+ | +136% | +200%+ above inflation |
| Housing (median price) | +250% | +136% | +49% above inflation |
| Energy (gasoline) | +35% | +136% | Below inflation |
| Food (general) | +200% | +136% | +28% above inflation |
Technology Deflation: The Good News in Inflation Data
Technology has been deflationary for 30+ years. The same computing power that cost $1,000 in 1990 costs effectively fractions of a penny today. Smartphone capabilities that would have required $1 million+ in specialized 1990 equipment cost $500 in a consumer device. This technological deflation partially offsets other price increases in the CPI, masking the true inflation experience in non-tech spending.
The BLS uses 'hedonic adjustment' to account for quality improvements in technology: a laptop that is 2x faster at the same price is recorded as a 50% price decrease. This hedonic adjustment reduces CPI in ways that may not match consumers' lived experience — you can’t eat a faster processor, and the benefits are more abstract than a lower grocery bill.
Energy Inflation: Volatile but Manageable Over Long Periods
Energy prices are highly volatile but have actually inflated below general CPI over the full 1990–2025 period. Short-term swings of 50–80% in gasoline prices happen; but the long-run trend has tracked near general inflation. U.S. shale oil production transformation (fracking revolution) kept domestic energy prices much lower than the global average over the 2010s, benefiting U.S. consumers significantly.
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