Doug McMillon as CEO Walmart says that soon US shoppers will face deflation. The existence of deflation causes the prices of goods to decrease, including groceries. People can buy chicken, eggs, and seafood at cheap prices. They can even get various merchandise at low prices too. Even reduced inflation still encourages local residents to spend more on goods.
US Society Will Experience Deflation Says Walmart CEO
Before news of deflation circulated, US society continued to struggle against inflation. They are trying to find a decent income to be able to survive in that country. Inflation itself causes all necessary prices to rise, including the contract price of a house or room. The people there felt a little relieved when news spread that they would experience deflation in the near future. The government and retailers conveyed the news directly to the people. Walmart, as a well-known retailer, has also struggled in the face of inflation so far. The emergence of deflation allows Walmart to provide discounts to its consumers.
All of America is struggling to survive because the prices of food, housing, electricity, and education have all gone up in the last year. Walmart was also forced to increase grocery prices in order to maintain profits. On the other hand, Cathie Wood also said that there is a possibility that the US will experience deflation next year. Cathie Wood is the founder and investor of ARK Invest. All industries in the US will be affected by this deflation.
It’s possible the Federal Reserve will need to start cutting interest rates. The potential for ongoing deflation could reach a negative point for CPI inflation next year. The news that the country was experiencing deflation was welcomed by its citizens. However, the opinion expressed by Cathie Wood is contrary to that of Wall Street. A number of economists also make predictions about how much deflation will occur. Some experts say there is a possibility that inflation will fall to 2.7% next year. Deflation itself also has a negative impact on purchases because buyers will hold back on purchasing goods. This will have a big impact on the entire industry, so many companies have the potential to cut the number of employees. As a result, the unemployment rate in the US has the potential to rise next year.
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