Key Points

  • As shoppers await price cuts, retailers like Home Depot say their prices have stabilized and some national consumer brands have paused price increases or announced more modest ones.
  • Yet some industry watchers predict deflation for food at home later this year.
  • Falling prices could bring new challenges for retailers, such as pressure to drive more volume or look for ways to cover fixed costs, such as higher employee wages.
  • Ookami38@sh.itjust.works
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    8 months ago

    Most of economics assumes perfectly rational actors capable of making these delayed purchases. It’s a bit reductive for sure, and hard to say how much the real world maps to the theory, but the logic works assuming those caveats.