Inflation’s Way Down, but Consumers Still Flinch at High Prices, Fed Observes

by Elizabeth Trovall
Market Place

In the latest Beige Book out this week, most Federal Reserve bank districts noted that retailers are offering discounts and price-sensitive consumers are buying fewer or lower-quality items.

This is the case even as inflation continues to cool. Prices actually came down in June from May, according to the latest consumer price index. So, why is price sensitivity lingering?

Pretty much anyone who eats can be price-sensitive. Even economists who track inflation, like Kayla Bruun with Morning Consult, who used to grab a bite at a nearby cafe.

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