American consumers are playing a crucial role in curbing inflation by resisting high prices and seeking cheaper alternatives. This shift in consumer behavior has forced companies to slow or even reduce price increases, contributing to a cooling of inflation pressures. Major corporations report customers increasingly opting for more affordable products and services, signaling a return to pre-pandemic pricing norms. While consumer spending remains sufficient to sustain the economy, the trend towards more price-sensitive shopping habits is helping to bring inflation closer to the Federal Reserve’s 2% target, potentially marking the end of the recent inflation spike.
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