If you’ve been recent to the grocery store or a big box store or ordered online for essentials, you probably noticed the higher prices.
The Consumer Price Index (CPI) reveals that prices in April rose 0.3% from March. The 12-month basis showed a 3.4% increase, in line with expectations but indicating no imminent reduction in inflation.
Here’s a breakdown of price changes from March to April:
– Food: up 0.3%
– Energy: up 1.1%
– Gasoline: up 2.8%
– Electricity: down 0.1%
– New vehicles: down 0.4%
– Used vehicles: down 1.4%
– Apparel: up 1.2%
– Medical care commodities: up 0.4%
– Shelter: up 0.4%
– Transportation: up 0.9%
– Medical care: up 0.4%
Though these increases may seem small, persistent inflation is palpable for nearly everyone.
“The index for shelter rose in April, as did the index for gasoline. Combined, these two indexes contributed over 70% of the monthly increase in the index for all items,” reported the CPI.
In response, some retailers are lowering prices on top-selling items and essential staples.
In March, Walmart announced a rollback of grocery prices to pre-inflation levels. “In food, prices are lower than a year ago… in places like eggs, apples, and deli snacks,” said Walmart CEO.
Following suit, Target announced in May it would cut prices on approximately 5,000 items to combat inflation. “We know consumers are feeling pressured to make the most of their budget, and Target is here to help them save more,” said Target’s executive vice president.
These price cuts primarily affect grocery and essential items. For instance:
– Good & Gather Unsalted Butter (1 lb): now $3.79 (was $3.99)
– Good & Gather Organic Baby Spinach (5 oz): now $2.99 (was $3.29)
– Prime Hydration Sports Drinks (16.9 fl oz): now $1.99 (was $2.19)
– Clorox Scented Wipes (75 ct): now $4.99 (was $5.79)
– Huggies Baby Wipes (16 ct): now $0.99 (was $1.19)
– Aveeno SPF 50 Sunscreen (3 fl oz): now $13.19 (was $13.89)
However, the impact of these cuts may take time to materialize, given that inflation has persisted for over a year. Target recently reported softer-than-expected earnings, largely attributing the decline to inflation-weary consumers opting for experiences over goods.
Target CEO emphasized a shift in consumer spending patterns toward services and entertainment outside the home, impacting sales in discretionary categories. Despite these challenges, Target maintains its outlook for comparable store sales.
