Target, Ikea, Aldi, McDonald's and Wendy's are among several well-known brands that have announced lower prices in recent weeks.
The competition is most intense between companies, like fast food joints and big-box stores, that cater to low- and middle-income people, experts added. Price increases, meanwhile, have slowed significantly from a peak of about 9%, but inflation still stands more than a percentage point higher than the Federal Reserve's target rate of 2%.
Credit card debt, meanwhile, climbed to a record high $1.13 trillion at the end of last year, New York Federal Reserve data showed. "Price competition among businesses that generally cater to lower income households is heating up," Zandi said. "Lower income households are under significant financial pressure."