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Amazon CEO Single-Handedly Killing Inflation

News from the business world reveals that the CEO of Amazon Jeff Bezos has changed the retail world. He is one the one who may apply a similar level of burden on the economy and prospects for future price trends at the supermarket.

The central banks are starting to network against an expected rise in inflation ahead, this man move to attain Whole Foods looks to be a noteworthy counterweight.

The different analyst expects Amazon to restraint in the high prices of the fashionable grocery chain “Whole Paycheck,” as it is often called and this will have a ripple effect through the industry.

David Rosenberg, who is the senior economist and strategist at the Gluskin Sheff said on Monday in his daily note “Now Amazon is going to reshape the entire food retailing industry and it is highly deflationary and this is an $800 billion grocery market we are talking about”.

Rosenberg observes “a supermarket war of historic proportions “that will have a significant effect on an industry “that already been confronted with escalating competitive pressures from the web as well as foreign entrants”.

Other economists did not agree with Amazon because the merger’s ramifications will be that dire, it certainly raises questions about how truly disruptive Amazon can be. And definitely, it should throw the burden on the shoulders of the other competitive chains, Wal-Mart and Target especially, to low down their prices. And it is very difficult to say where this war of economists will end.

It will create a new topic for the debate for the Fed and Washington lawmakers. The president of the American Restaurant Association, said in a note “We doubt it means much for commodities in the near term, but underscores the changing landscape for how consumers purchase food,” he added to his statement that “Of course we don’t know Jeff Bezos plans here, but it’s highly likely he sees something in food sales that can be disrupted on a massive scale. We live in remarkable times, for sure”.

The biggest tie will between the retail online and brick and mortar models. And in this regard, Bezos already broke the barrier with pop-up stores and its Seattle bookstore. And his active partnership with Whole Food knocks down that huge wall completely and it touted a new day for the industry.


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