Linda0818
Head Chef
I just recently came across an article saying Giant Eagle is lowering prices on over 200 items. I honestly can't afford to shop Giant Eagle because they're so expensive.The current inflation rate is 2.2%, which is a pretty close to the normal rate of 2.0%. That's why the FED lowered interest rates.
The problem now is that once stores raise prices, they are reluctant to lower them. They want to get those extra profits for as long as they can. But, I am seeing a lot of grocery items on sale, because stores can lower prices without making a long-term commitment to lower prices.
All it would take is for one huge grocery chain (Walmart?) to lower prices on thousands of items, and every grocery chain will have to do it.
CD
Now, I don't know if GE lowering prices will cause a domino effect with other stores, but your reasoning is spot on that if one major chain does it, everyone else will feel the need to follow suit. However, I don't know how much of an influence Giant Eagle will have on other establishments.