A report released on May 14th found that retail prices had stayed relatively level, with consumers paying less for food and energy costs in the month of April. This is relatively good news in keeping the risk of inflation at bay.
Consumers are looking at lower prices on goods through the summer, with fuel costing significantly less than last summer’s high price of $145 a barrel, potentially spurring American’s to make travel plans through the season. Many people were adversely affected by skyrocketing gas prices last summer, which climbed near $4 a gallon.
However, the lower prices reflect a drop in demand, showing that demand for consumer goods could remain weak throughout the year- bad news for retailers hoping to woo customers in with lower prices and sales.