Economists have found out that unlimited data mobile phone plans help limit inflation of the country. The unemployment levels are low and the job market is tightening. However, core inflation increased only by 1.9% in April when compared to the same time last year. It was at a 2.3% growth level in January and the surge has taken a significant deceleration. Core inflation excludes volatile price changes that are typical of the food and energy sectors.
March saw an actual fall in core prices, something that has not happened in over seven years. So it did cause a lot of intrigue among economists. While there are many forces at work in a large economy there are many factors. Some of which include the drop in the automobile market, marked by a spike in used car sales, the major contributing factor for this decline are mobile phone plans. Nearly 50% of the cause for this deceleration in core CPI inflation can be traced down to mobile phone plans.
Unlimited Data Mobile Phone Plans Data Help Limit Inflation
Plan prices saw a sharp drop of 7% in March and April added to it by dropping a further 1.7%. This decline has been the largest the market has seen in over 16 years. Compared to April 2016, the cost of mobile internet is down by well over 12%. The reason behind this? Good old market share price wars. Every provider is scrambling to capture and retain as large a chunk of the market as possible. They do this by offering unlimited, high speed mobile internet plans. Verizon, Sprint, T-Mobile, and AT&T are going all out with Verizon, the country’s largest provider reintroducing unlimited plans this year.
The drop in inflation might only be a one-off anomaly. Mostly because there is really nothing that can beat an unlimited plan. Similarly, inflation is expected to stabilize and go back to healthy levels within the end of this quarter.