UBS On-Air: Paul Donovan Daily Audio 'Is profit-led inflation fading?'

The UK British Retail Consortium reported “fierce competition” (otherwise known as “competition”) driving falling food prices. Profit-led inflation, which tends to occur at the end of supply chains, may be in decline. Competition did not lower prices earlier, because consumers were sold a story that oil prices, global shortages, or the war in Ukraine caused inflation. Consumers are not now prepared to believe those stories, and profits and prices are under pressure.