In May, retailers Walmart and Target announced promotions and price cuts on thousands of items in a bid to boost consumer spending. While Walmart revealed promotions on 7,000 items, Target announced price cuts on 1,500 items. This news was welcomed by cash-strapped consumers who are still facing high prices for essentials like a dozen eggs, which now cost around $3 – nearly double the pre-pandemic price.
Despite these efforts by retailers, it may not be enough to significantly increase consumption. Services are now a more prominent driver of inflation than goods. Rising prices for housing, utilities, transportation services, insurance premiums, and healthcare are putting pressure on consumer finances, according to our analysis.
Consumers are feeling the squeeze from increasing costs in key areas like housing, transportation, and healthcare. While discounts on retail goods may help lower some expenses, the overall impact on consumer finances is still significant. Retailers like Walmart and Target are doing their part to support consumers, but more comprehensive measures may be needed to address the broader challenges of rising inflation and consumer affordability.
