How Walmart Plans to Keep Prices Low This Year

Walmart is flexing its muscles to try to avoid further price hikes.

Soaring prices have hit Americans hard in the past year, impacting everything from food to gas, housing, and other essentials. According to the latest data from the Bureau of Labor Statistics, food at home in January cost over 10% more than it did a year ago. Unfortunately, many consumers have had little choice but to find ways to absorb the higher costs.

For those looking for a light at the end of the inflationary tunnel, there is some good news. Not only does it seem that inflation is slowing down, but some companies -- such as Walmart -- are telling suppliers that enough is enough.

Walmart's plan to stop more price hikes

A lot of different factors pushed prices up last year. These include a pandemic-stimulus-fueled surge in spending, a disruption in global food and gas supplies following Russia's invasion of Ukraine, higher transportation costs, and other supply chain issues.

But some of those pressures are easing now. For example, the cost of both freight and packaging are falling. That gives chains like Walmart more power to challenge suppliers and -- hopefully -- avoid further price hikes. According to Reuters, Walmart has told suppliers that consumers can't swallow any further price increases. The CEO of one company told Reuters Walmart had advised they'd have to "have really good reasons" to price up at this point.

Walmart prides itself on its low prices, with the slogan "Save money. Live better." It's good to see the company pushing back on price hikes and defending consumers. That said, it isn't the only low-cost store around -- it's also worth checking out Aldi, Lidl, Trader Joe's, and Costco if you're looking to reduce your grocery bill. A lot depends on the items you buy, whether you buy in bulk, and which stores are easy to get to.

How to cut your grocery bill

The increase in prices has pushed some Americans to dip into their savings accounts or even take on debt to keep up with essential costs. If you're struggling to stay on top of higher prices, don't rely just on Walmart or other chains to bargain for lower prices. There are a number of ways you might cut your grocery costs yourself, starting with the store where you shop and the brands you buy. For example, avoiding big brands can often shave a few dollars off your bill, without compromising much on taste or quality.

Here are some other moves you could make:

• Shop with a list: Having a list can save you money, time, and stress. For starters, you'll be able to make fewer trips to the store and avoid accidentally buying items you already have at home. It also makes it easier to avoid impulse purchases and maximize any cash back app promotions.
• Cut out food waste: According to the USDA, around one-third of the food in the U.S. gets wasted. Don't let your kitchen be part of that statistic; use leftovers, watch sell-by dates, and freeze food before it goes bad. Check out food waste apps, as these may generate great deals on produce that would otherwise be thrown away.
• Maximize cash back: If groceries make up a big portion of your monthly budget, look for a credit card that will reward you for that spending. Layer your benefits by combining a grocery rewards card with a cash-back app and other promotions.
• Search for discounts: Use coupon apps and websites to find the best deals on items you buy regularly, especially more expensive products. Throw in the additional deals you'll find in store and you can snag some big savings. There's one caveat though: Don't let those offers tempt you to buy things you won't use or wouldn't normally have bought.
• Buy in bulk: Bulk buying can be a great way to save money, especially on products you know you'll use before they go bad. If you're worried about the upfront costs, or aren't confident you'll get through it all, consider splitting the cost and the purchase with a friend or neighbor.

Bottom line

There are signs that inflation is slowing, and moves from big chains such as Walmart to keep prices in check are certainly welcome. Even if prices don't fall in the coming months, they might not shoot up again either.

That said, you don't necessarily have to make big life changes to beat inflation. If you can implement several small tweaks that all generate small savings, you'll be surprised at how much they can add up and leave you with more money in your bank account at the end of the month.