McDonald's is trying to win back budget-conscious customers with price cuts on combo meals. The fast-food chain hopes this move will restore its reputation for affordability, which has been impacted by inflation and a struggling US economy. According to the Wall Street Journal, restaurants, especially fast-food chains, are finding it difficult to attract customers who are feeling the pinch.
However, while McDonald's is lowering prices, other major corporations are increasing them, largely due to President Donald Trump's tariffs. Inflation is proving to be a significant issue, impacting Trump's approval ratings.
Sony Raises Playstation 5 Price
Sony recently announced a $50 price increase for the Playstation 5, a move that bucks the trend of video game consoles becoming cheaper over time. The company cited a "challenging economic environment" as the reason, explicitly linking the increase to tariffs. This price hike only affects US consumers.
Other Companies Follow Suit
Sony isn't alone. Microsoft has already increased the price of its Xbox Series X by $100, and Nintendo has raised prices for its Switch and accessories for the upcoming Switch 2. Home Depot, after resisting for some time, has also announced that it will begin raising prices due to tariffs. Procter and Gamble, the maker of numerous household brands, stated that it would increase prices for 25% of its US product line. Walmart has also started raising prices, with CFO John David Rainey mentioning that "tariff-impacted costs are continuing to drift upwards."
While these big corporations make headlines, small businesses are also feeling the effects of these tariffs. The combination of inflation and tariffs is creating a challenging economic landscape for both businesses and consumers in South Africa.
Will McDonald's price cuts be enough to offset the broader trend of rising prices driven by tariffs? Only time will tell if South African consumers will be able to find relief from these economic pressures.