How frugal shoppers are helping to fight inflation
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March 10, 2023
Hiroko Masuike, New York Times
Shoppers at the Herald Square Target in New York. Food inflation in the United States has remained stubbornly high, in part because of strong consumer demand and a willingness to pay higher prices. A Deloitte study says consistent frugal behavior can help rein in runaway food prices.
It's not just the Federal Reserve that can fight inflation - consumers can, too, by changing their buying habits, Deloitte researchers say.
Consistent frugal behaviors by enough people can force retailers and manufacturers to keep prices, and profit margins, in check. But a new longitudinal study by Deloitte found not everyone is curtailing their spending.
"When consumers signal they can no longer tolerate higher prices, retailers and consumer products companies could begin to lose their pricing power," the study says. "It may be painful, but frugality is expected to precede and, with time, contribute to decreased retail food inflation."
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