"Consumers are increasingly pushing back against price increases — and winning."

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Inflation has changed the way many Americans shop. Now, those changes in consumer habits are helping bring down inflation. Fed up with prices that remain about 19%, on average, above where they were before the pandemic, consumers are fighting back. In grocery stores, they’re shifting away from name brands to store-brand items, switching to discount stores or simply buying fewer items like snacks or gourmet foods. More Americans are buying used cars, too, rather than new, forcing some dealers to provide discounts on new cars again. But the growing consumer pushback to what critics condemn as price-gouging has been most evident with food as well as with consumer goods like paper towels and napkins.

In recent months, consumer resistance has led large food companies to respond by sharply slowing their price increases from the peaks of the past three years. This doesn’t mean grocery prices will fall back to their levels of a few years ago, though with some items, including eggs, apples and milk, prices are below their peaks. But the milder increases in food prices should help further cool overall inflation, which is down sharply from a peak of 9.1% in 2022 to 3.1%. Public frustration with prices has become a central issue in President Joe Biden’s bid for re-election. Polls show that despite the dramatic decline in inflation, many consumers are unhappy that prices remain so much higher than they were before inflation began accelerating in 2021. Biden has echoed the criticism of many left-leaning economists that corporations jacked up their prices more than was needed to cover their own higher costs, allowing themselves to boost their profits. The White House has also attacked “shrinkflation,” whereby a company, rather than raising the price of a product, instead shrinks the amount inside the package. In a video released on Super Bowl Sunday, Biden denounced shrinkflation as a “rip-off.”
Samuel Rines, an investment strategist at Corbu, says that PepsiCo, Kimberly-Clark, Procter & Gamble and many other consumer food and packaged goods companies exploited the rise in input costs stemming from supply-chain disruptions and Russia’s invasion of Ukraine to dramatically raise their prices — and increase their profits — in 2021 and 2022. A contributing factor was that millions of Americans enjoyed solid wage gains and received stimulus checks and other government aid, making it easier for them to pay the higher prices. Still, some decried the phenomenon as “greedflation.” And in a March 2023 research paper, the economist Isabella Weber at the University of Massachusetts, Amherst, referred to it as “seller’s inflation.” Yet beginning late last year, many of the same companies discovered that the strategy was no longer working. Most consumers have now long since spent the savings they built up during the pandemic. Lower-income consumers, in particular, are running up credit card debt and falling behind on their payments. Americans overall are spending more cautiously. Daco notes that overall sales during the holiday shopping season were up just 4% — and most of it reflected higher prices rather than consumers actually buying more things.
https://apnews.com/article/inflation-co ... bbb63370af

We've been talking about this for over a year and Biden is now talking about it, because of the election. Southern California supermarkets like Vons, Albertsons, Ralphs and especially Whole Foods have always been more expensive than the regional chain Staters, but Staters also increased prices. I don't buy a lot and I can afford to pay the higher prices, but I don't support their "greedflation". The local Walmart and Aldi along with Grocery Outlet are cheaper.

I think voters will remember that it wasn't the Biden Administration, but their own buying habits that forced price reductions.
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: "Consumers are increasingly pushing back against price increases — and winning."

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https://www.theguardian.com/business/20 ... te-profits
A new report claims “resounding evidence” shows that high corporate profits are a main driver of ongoing inflation, and companies continue to keep prices high even as their inflationary costs drop.

The report, compiled by the progressive Groundwork Collaborative thinktank, found corporate profits accounted for about 53% of inflation during last year’s second and third quarters. Profits drove just 11% of price growth in the 40 years prior to the pandemic, according to the report.
Corporate greed. As these companies raked in record profits they blamed their price increases on inflation.

VooDoo
Tyrants disarm the people they intend to oppress.

I am sworn to support and defend the Constitution of the United States against all enemies, foreign and domestic.

Re: "Consumers are increasingly pushing back against price increases — and winning."

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Yes, PepsiCo is one of the greedy companies that's getting pushback from consumers and food retailers.
PepsiCo, on Friday reported a surprise drop in quarterly sales and forecast a sharp slowdown in organic revenue growth for 2024 as multiple price hikes weigh on demand for its beverages and chips, sending its shares down as much as 4%. The company said demand has started to wane mainly in the U.S., where consumers are balking at higher prices for sodas and snacks after two years of PepsiCo passing on higher production costs to customers to shield its margins. "We are seeing a bit of a slowdown in the U.S.," CEO Ramon Laguarta said on a post-earnings call. Both food and beverages slowed in the fourth quarter, he said, in part due to pricing and tightening household budgets.

In January, Carrefour, Europe's largest food retailer, asserted it would not be stocking PepsiCo's brands "due to unacceptable price increases". PepsiCo's fourth-quarter revenue fell 0.5% to $27.85 billion, the first drop in 14 quarters. Analysts had expected a 1.4% rise to $28.40 billion, according to LSEG data. Everybody had high expectations with PepsiCo's performance so far, said Don Nesbitt, portfolio manager at ZCM, which holds an about 1% stake in the Doritos maker. "We knew that they weren't going to be able to push through as much pricing as they have in the past." The soda and snacks giant forecast annual organic revenue growth of at least 4%, compared to the 9.5% growth reported for fiscal 2023.

However, the company expects fiscal 2024 core earnings per share of $8.15, compared with expectations of $8.14. PepsiCo expects raw material costs to moderate from the levels seen in fiscal 2023, Chief Financial Officer Jamie Caulfield said. It also announced a 7% increase to its annual dividend. In the fourth quarter, core gross margin expanded 97 basis points as average prices jumped 9%. Organic volume slipped 4%. "The volumes again are not kind of performing...they are not getting the improvement in tandem with the moderating levels of pricing... that is likely going to be a headwind for them over the near term," Wedbush analyst Gerald Pascarelli said.
https://www.reuters.com/business/retail ... 024-02-09/
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: "Consumers are increasingly pushing back against price increases — and winning."

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highdesert wrote: Sun Feb 25, 2024 9:50 am
I think voters will remember that it wasn't the Biden Administration, but their own buying habits that forced price reductions.
I wish I shared your optimism.

Yes, educated voters will recognize that Biden doesn't have a series of levers on the desk in the Oval Office that controls prices of oil and groceries and rent, but the ceaseless drumbeats of those at the top of the (mis)information silos favored by the low-information voters remains too damned effective.
Eventually I'll figure out this signature thing and decide what I want to put here.

Re: "Consumers are increasingly pushing back against price increases — and winning."

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During WWI, WWII and the Korean War there were price controls, also during the Nixon Administration from 1971 to 1973. Wartime I can see it, but in the 1970s it didn't really work. There were supply chain problems coming out of the pandemic but those have been resolved. I wish Biden had used his bully pulpit and raged on about prices, because Republicans have been using it to their advantage. Presidential elections are about bread and butter issues.
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: "Consumers are increasingly pushing back against price increases — and winning."

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I have always been amazed at the people who think that the President can control the economy and thus, boom or bust, is his fault or success. He's not God even though an awful lot of them act like they are.

VooDoo
Tyrants disarm the people they intend to oppress.

I am sworn to support and defend the Constitution of the United States against all enemies, foreign and domestic.

Re: "Consumers are increasingly pushing back against price increases — and winning."

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We can bet if TOS is elected, the problems with the economy will be blamed on the Dems and not on the money grabbing oligarchs and corporations. The MAGAs will believe anything that TOS and his minions tell them. This is just good way to go to Fascism.
Facts do not cease to exist because they are ignored.-Huxley
"We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both." ~ Louis Brandeis,

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