Shoppers May See Lower Prices this Holiday Season
As the holiday season approaches, shoppers can expect to find falling prices in many gift-giving categories, according to Walmart CEO Doug McMillon. McMillon stated that deflation is imminent in general merchandise and key grocery items, including eggs, chicken, and seafood. He also mentioned that higher prices for pantry staples are likely to decrease in the coming weeks and months.
This news comes as a welcome relief for consumers who have been dealing with inflation peaking at nearly four-decade highs and increasing the cost of various goods and services. The latest Consumer Price Index report from the Labor Department showed that inflation remained flat month-over-month, with core CPI hitting a two-year low. This report aligns with statements made earlier in the week other retailers.
According to Home Depot CFO Richard McPhail, “the worst of the inflationary environment is behind us,” providing a glimmer of hope for inflation-weary consumers. Even the cost of Thanksgiving dinner is expected to be lower this year, with the average cost for a dinner for 10 people projected to be 4.5% less from last year’s total.
While retailers like Walmart have felt the pressure of stubborn inflation, there is still some time until inflation completely eases. Americans are still spending more on items across most categories, with food at home, electricity, and haircuts costing more than they did a year ago.
Despite the challenges posed inflation, Walmart remains optimistic. Though grocery prices are up compared to last year, McMillon stated that the pockets of disinflation provide some relief, but they hope to see even faster progress.
Overall, the prospect of lower prices and decreased inflation offers a much-needed respite for consumers ahead of the holiday season. For more retail news, be sure to head to CNBC’s website.