Supermarket chains announce price cuts after acknowledging government pressure

Large supermarket chains such as Target, Walmart and Aldi have begun to announce food price cuts, after two years of profiting from price increases, which has influenced Americans to consider inflation and the economy their main concerns for the 2024 elections

The White House acknowledged that it has been pressuring food chains and supermarkets to reduce prices and give families “more room to breathe,” just after Target announced sales on about 5,000 products, including dairy, vegetables, bread, diapers and coffee.

“President Biden called on grocery chains making record profits to lower prices for consumers, and they are answering the call. “@POTUS is calling on other large corporations to join these leaders and lower food prices to give families more room to breathe.”

“President Biden and his team have held meetings with business executives, including Target President Brian Cornell, to discuss the elevated costs facing families,” according to the White House.

“Target, Walmart and other supermarket chains have begun to respond to the president’s push for lower prices on household items.”

It’s a statement, Target said this pricing change “will save consumers millions of dollars in the summer.”

Walmart, the largest retail store chain, also joined the announcement of price reductions on thousands of products and will offer a range of processed foods for less than $5.

The German supermarket chain Aldithe fastest growing in the United States, also recently announced price reduction on 250 products, in an attempt to join these promotions, which occur during the “Memorial Day” holiday period, one traditionally linked to discounts to promote consumption.

The index of prices paid by consumers has risen in a year and until April was at 3.4%, a slight relief from the 3.5% annual increase until the previous month.

Although data on gross domestic product, unemployment, corporate profits and other macroeconomic indicators look positive, polls show that Americans continue to complain about high prices, with just over five months until the elections.

Prices of food and other household supplies have risen almost 27% since 2020, well above the general price index, while family debt continues to increase.

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