US inflation continues to soar! Amazon, Walmart, and Target are engaged in a price war

According to the Bureau of Labor Statistics, the overall U.S. consumer price index rose 7.9% in February from a year earlier, up from 7.5% in January, the fastest pace in four decades. The expected rate of increase in consumer prices over the next 12 months has also jumped since Russia invaded Ukraine.

Rising inflation is hurting U.S. consumers. Data from the Commerce Department showed U.S. retail sales growth slowed sharply last month, while U.S. consumer confidence hit a 10-year low this month.

Despite increased procurement costs, Amazon, Walmart and Target have begun to make themselves as competitive as possible on price in order to retain consumers.

Walmart, which has always been known for its low cost, has begun to cut costs in price-sensitive categories such as groceries and electronics. Walmart CEO said in a fourth-quarter earnings call last month: "We are working closely with our suppliers to manage inflation and find some places where we can lower prices."

Walmart is currently reducing prices on consumer electronics and some dry goods and grocery items. Not only that, Walmart also hopes to win the trust and goodwill of consumers during this special period by lowering prices.

Target shares the same view, with a spokesperson saying: "Target will protect prices from increasing as much as possible." But there are no obvious price cuts at the moment.

Target CEO said in its latest earnings conference: "We will try our best to balance maintaining profitability and providing more customer value. We will work with our supplier partners to reduce costs at every link, from procurement to production to transportation."

Amazon is also dealing with rising labor costs and has not yet cut prices, but Chief Financial Officer Brian Olsavsky said the company is working to offer lower prices, better selection and more convenience as part of its goal to provide a good customer experience.

Editor ✎ Xiao Zhu/

Disclaimer: This article is copyrighted and may not be reproduced without permission.