Retailers to Slash Prices to Combat Inflation's Squeeze on Consumer Spending from anita natokla and hm Watch Video

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⏲ Duration: 0:43
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✓ Published: 07-May-2024
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Retailers have announced price cuts on thousands of products in recent weeks in an effort to entice consumers to spend more. Inflation has pushed prices 20-30% higher than a year ago while incomes have failed to keep up. Discretionary spending on non-essential items has slowed, so retailers are hoping price cuts will convince consumers to purchase more optional items. Overall retail sales in March rose only 0.7% month-over-month, a slower pace than in February. Consumer spending, which drives two-thirds of the US economy, has weakened as higher prices cut into household budgets.

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