Should decreasing inflation mean lower prices? — RetailWire.com

Industry experts ponder whether lowered inflation should force CPG companies to lower their prices:

“If retailers cannot convince CPGs to lower prices, consumer behavior may have more success. Several major brand manufacturers reporting increased profits have noted product volume declines. The decision to maintain and even take prices up further could reach a point of substantially diminishing returns if the labor market weakens or other factors, such as personal debt, begin to weigh on American households.“

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