We got some good news in July regarding the ongoing inflation situation in the United States - consumer prices declined for the first time in four years in June. However, inflation’s impact on prices remains a top concern, with e-commerce giants like Amazon highlighting the cautiousness and deal-seeking behavior of consumers.

For the first time since May 2020, consumer prices declined in June, dropping 0.1% month-over-month, resulting in the consumer price index rising at an annual rate of 3.0%, – its lowest level seen in over three years.

Recently, Amazon reported that its overall net sales for Q2 2024 totaled nearly $148 billion, a 10% increase over Q2 2023, with the North America segment contributing $90 billion – a 9% increase over Q2 2023.

Net sales growth for the North America segment has gradually slowed throughout 2024 dipping below 10% year-over-year in Q2 2024 for the first time since Q1 2022.

According to Amazon’s CFO, Brian Olsavsky, in an earnings call with reporters, consumers remain cautious with their spending and are deal-seeking. This is reflective of current consumer sentiment and behavior in the United States as the impact of inflation on prices and purchasing power has led to consumers seeking less expensive products.

While inflation cools and prices remain elevated, we can expect to see consumers continue to remain cautious and look for deals, resulting in growth in retail sales in categories like nonstore retailers as they offer more deals to consumers at lower price points.