have all contributed to measured declines in the prices of computers and phones (Graph 7). However, households may not necessarily see that prices of these goods have declined over time when purchasing these products, particularly if they do not value or use all the services that are bundled into their computer or phone.
[4] The retail price may remain relatively constant, but the product you are getting for that price is much better quality. This shows up as a decline in the price in the CPI.