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Consumers are tired of inflation. But some retailers fear falling prices

www.cnbc.com Consumers are tired of inflation. But some retailers fear falling prices

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.

Consumers are tired of inflation. But some retailers fear falling prices

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.
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