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.
Traditional economic theory- yes. Hence why deflation can cause such issues.
However, there is also a significant part of consumption that you will make regardless of price, because the alternative is death. (C0 and C1 for anyone who took first year).
The problem is prices grew soo much our entire spending is now limited to essentials (c0), and even if I knew it would be cheaper next week im only getting it because I need it now.