Target reduces prices on 5,000 products as high inflation persists

Target is the latest company to announce that it's slashing prices as inflation continues to squeeze consumer wallets. The price cuts will take effect this summer.

Target is cutting prices on 5,000 popular products in an effort to attract more customers despite ongoing financial challenges, the company announced Monday. 

By reducing the prices on household essentials from groceries like milk, meat, bread, soda, fresh fruit, vegetables, yogurt and coffee to diapers, paper towels and pet food, consumers will collectively save consumers millions of dollars, Target said. 

Target said it has already cut prices on 1,500 items and that "thousands more price cuts" will take effect over the course of the summer.

"Target routinely adjusts its prices to ensure it is competitive within the markets it does business," Target said. 

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It's the latest company to announce price cuts for its products in recent weeks to help consumers that are still being squeezed by inflation. 

Last week, Walmart executives told analysts on an earnings call that its rollback count is up. Rollbacks refer to temporary price reductions on goods. 

U.S. Walmart CEO John Furner specified that the company has nearly 7,000 rollbacks across the store. In April, the grocery rollback count was up 45% year over year. 

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Earlier this month, discount grocer Aldi announced it was passing along $100 million in savings by slashing prices on more than 250 items through Labor Day. 

Inflation remains well above the Federal Reserve's 2% target and continues to create severe financial pressures for most U.S. households. 

In April, inflation climbed 3.4% from the same time last year, down from the 3.5% reading in March. While inflation has fallen considerably from a peak of 9.1%, progress has largely flatlined since the summer. 

The Census Bureau reported last week that retail sales in April were unchanged from March and up 3% from the prior year.

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"The softer pace of spending is due in part to consumers being selective and prioritizing retail purchases," National Retail Federation chief economist Jack Kleinhenz said.

Still, he noted that "consumers remain willing to spend, keeping the economy afloat despite fatigue from stubbornly high inflation for services and higher interest rates."

FOX Business' Megan Henney contributed to this report.