Refusal To Pay Higher Prices May End Inflation Spike

WASHINGTON (AP) — The great inflation spike of the past three years is nearly spent — and economists credit American consumers for helping slay it. Some of America’s largest companies say their customers are increasingly seeking cheaper alternative products and services, searching for bargains or just avoiding items they deem too expensive. Consumers aren’t cutting back enough to cause an economic downturn. Rather, the economy appears to be returning to pre-pandemic norms, when most companies felt they couldn’t raise prices much without losing business. A more price-sensitive consumer helps explain why inflation has appeared to be steadily falling toward the Federal Reserve’s 2% target, ending a period of painfully high prices that strained people’s budgets and darkened their outlooks on the economy.