Companies Are Struggling With Inflation-Driven Consumers
Inflation has altered consumers' buying habitsgetty Year-to-year inflation may look low, but prices continue to compound upwards. For example, "Food at home" pricing, accounting for 8% of the total CPI basket, was up 1.8% in 2024. That seemingly low inflation rate nevertheless pushed up the Covid period price inflation to 27.6%, and that is what consumers are contending with. So, why is that a problem for companies? Because consumers’ actions to reduce the inflationary effects can adversely affect business revenues and profits. Grocery shopping is a good example. Here are...