Shoppers are trading down to cheap beer brands and discount cigarettes as they feel more pressure on their pocketbooks.
Consumer prices in the U.S. rose at a 9.1% annual rate in June, the fastest pace in nearly 41 years, as strong consumer demand has collided with persistent supply shortages. In a survey released this month by the National Retail Federation, nearly half of consumers said that because of rising prices on everyday necessities, they were switching to cheaper alternatives.
