Deflation could put pressure on retailers and brands to drive more volume, debut innovative products and find other ways to cover costs such as higher wages.
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.
This article makes me want to vomit. All these companies and CEOs talking about inflation like it's this intangible phantom that nobody can get a grasp on.
“If one looks at inflation over time, we very rarely get into periods of sustained deflation. That’s just not a consumer effect,” Coke CEO James Quincey said Feb. 13."
It's the companies and CEOs price gouging. Call a spade a spade for Christ's sake.
Question for the economists in this thread. Everyone seems to be saying that a lack of at least some inflation is bad but also that wages going up to meet it is bad. Isn't this a system automatically doomed to fail? Eventually in such a setup no one can afford anything and the economy collapses.
Not hitting record profits year after year. Reducing their CEO from a five yacht household to a four yacht household. Finding ways to hardline lobby to reduce taxes to zero.
They tighten their belts, we tighten our belts, everybody loses. All because they got to have all the money and never leave anything on the table for the working class.
When's the last time the US saw significant deflation? The 30's? Can't say I blame them for their fear. But they'll see no sympathy from me! We've seen two whole generations born, raised, and passing away in the age of "Number always go up!" business. At least the greatest generation grew up hearing stories of difficult times when it was the unions and collectives that brought them through the darkness. I'm sure current business leadership has no clue how to face this. It's passed out of living memory.
Fuck retailers. Have less shareholder profit and get over it. They want profit to be fixed or increasing. They view it in an accounting sense as something they cannot have decrease, ever. This is unrealistic and makes them do stupid things.
Chickpeas, soyflakes, rice, hemp & chia seeds, quinoa, tofu, lentils, flour. Most of the dried goods have a shelf life of 1-2 years. The cost of them is sinking in germany. I'm fine with people complaining about rising cost of meat, eggs and dairy and ignoring that fine sources of protein, minerals and vitamins. More for me.