Consumers' Resistance to High Prices Helps Curb US Inflation Surge

Major US corporations like Amazon, Disney, and Yum Brands observe a shift as consumers opt for cheaper alternatives, refusing to accept elevated prices. This price-conscious consumer behavior, recognized by Federal Reserve's Tom Barkin, is aiding in curbing inflation, with the consumer price index expected to show a 3.2% year-over-year increase in July.

Factors like consumer caution and pandemic-era pricing power, as mentioned by Jared Bernstein of the Biden administration, play a role. Economist Isabella Weber's concept of 'sellers' inflation' explains how supply chain issues justified price increases that consumers are now challenging.

Noteworthy is online retailer Dormify offering discounts, while the Fed's Beige Book reports similar trends across various districts. Yum Brands also felt the impact, with a 1% decline in sales in the April-June quarter at established stores.