Companies like Conagra Brands and PepsiCo acknowledged it today.
showed inflation cooling off, as the cumulative effect of price increases since the pandemic has reoriented consumer behavior."Some parts of the portfolio need value adjustments," he said of the Frito-Lay owner's snack products, adding that "for particular consumers, we need some new entry price points.
"— whose products include Duncan Hines desserts, Hunt's ketchup and Swiss Miss cocoa — consumers are still adjusting to what CFO David Marberger today called "significant" price increases over the last two to three years.At Delta Air Lines, the company has benefited from a surge in travel over the last few years — but consumers aren't forking over more cash for tickets., as excess capacity is poised to trigger what Delta CEO Ed Bastian today called "pretty significant corrective action.""Consumers are more sensitive to price increases after several years of high inflation," Comerica Bank chief economist Bill Adams wrote today. "That is making businesses more cautious about raising prices" and, in turn, is leading to "slowing inflation," Adams continued.Companies may not benefit from more price hikes, but the costs of goods have largely stabilized, which could preserve their profits. "Businesses' input costs have been more stable in the last 18 months, reducing upstream pressure on them for price increases," Adams added.Share on facebook Share on email
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