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.
Why would the price of milk drop by half? I’ve seen the price of eggs drop by half, but only after they rapidly jacked it up 6x and the price drop didn’t only take a week to happen. Regardless, if people are not going to be kicking themselves because they could’ve saved $2 if they bought a week later. It’s the collective raising of prices of almost everything altogether that is destructive.