JUST SHOP:

There are signs that inflation in the price of turkeys, pies, green beans and bread rolls has peaked, for this season at least, as more supermarkets start stepping up their promotions. [...]

There are risks in supermarkets yo-yoing between markups and markdowns, however. In Britain, the last time there were significant inflationary pressures about a decade ago, grocers responded first by raising prices and then later offering promotions to stimulate demand. That gave oxygen to discounters Aldi and Lidl, which undercut the back-and-forth by maintaining consistently low prices. With Aldi expanding aggressively in the U.S. and Lidl also finding its footing there, American retailers won't want to make the same mistake. 

Already, there are signs that consumers are trading down in categories where prices are rising.

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