Consumer prices down, but some costs way up

The latest report on consumer prices may have you cheering, particularly if you're a consumer. That's because the Consumer Price Index, a widely watched inflation measure, fell 0.2 percent in May from a month earlier. The dip could imply that your out-of-pocket costs in retail stores are on the downswing. Is the world on sale?

Hardly.

"It's not like we've seen any broad devaluation," says Steve Reed, an economist at the Bureau of Labor Statistics, who notes that June 17's index is seasonally adjusted -- meaning economists fine-tune it to erase the price patterns that happen each and every May. When you strip away their work, actually, prices rose 0.1 percent from a month ago and 2.0 percent from May 2009.

That's why if you look through at all the prices economists didn't adjust -- and we did -- you'll find that shoppers planning some typical summer splurges might not feel the wallet-friendly fees the price index seems to suggest. Don't worry, it's not all bad news. Some costs seem to have melted in May.

Barbecues: Charcoal-broiled burgers made with ground beef are delicious but can burn your budget, up 3.6 percent just since January. Beef steaks are 7.3 percent more expensive, and the category that includes corn on the cob, squash and cucumbers has jumped nearly 8 percent since the start of 2010. Oh, and don't butter anything -- that creamy product costs 8.6 percent more than it did just five months earlier.

Instead, while getting the grill going, place on the table big bowls filled with olives, pickles and relishes. It is hoped your guests will curb their appetites on the appetizers that are up 1.8 percent since the beginning of the year, but still 1.4 percent cheaper than May of last year. Then serve everyone frankfurters, which are 2 percent less expensive.

Vacation: Ah yes, school's out, and the summer season might seem like the perfect time to get away. Too bad airfares are up 4.1 percent since January and -- for those seeking the good deals of last year -- up 13.8 percent since May 2009. The reason? Airlines tired of flying half-empty planes grounded aircraft and packed the ones that are taking off, says George Hobica, founder of airfarewatchdog.com.

Thinking about a drive? That's nice, but not cheap. Even if you already own your car, motor oil is up 4.4 percent since January, and parking fees and tolls are up 0.6 percent (but up 3.7 percent from a year ago.) And oh yes, the gas. Prices for all types are up 9.7 percent from the start of the year and are 27 percent more expensive from a year ago.

Hotel prices, meanwhile, are up 13.8 percent since the year kicked off.

So what's an inflation-watcher to do during those long, summer days?

Get active: Here's some healthy price news, the cost of bicycles and the accessories you'll need to ride them -- such as helmets, bells, tassels and handle bars -- haven't budged since January and are down 1 percent since last May. Why? Reed isn't sure but notes that price tags for recreational items and other durable goods aren't particularly volatile.

Stay hydrated: All that exercise under the hot summer sun will get you thirsty. Good thing that fruit juices are less expensive. Frozen varieties are down just a tinge from January but are 1.3 percent less expensive than they were a year ago. The fresh juices fell 3.2 percent in price from last year.

Capture the sunsets: The flowers are in bloom, the kids are home and let's face it, nobody is getting any younger. So spend the summer capturing the sights with your camera. Prices for photography equipment (cameras, lenses, filters and flashes) are similar to other technological goods in that -- recession or no recession -- they get cheaper each year. "The same price point buys a better camera," says Sanjeev Katz, an economist at the Bureau of Labor Statistics. "And the same camera becomes less expensive."

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