Walmart Chief Financial Officer Brett Biggs said shoppers aren’t trading down to cheaper brands, buying smaller packs or skipping over discretionary items — but said they are paying attention to rising prices.

In a CNBC interview, he stated that “we haven’t seen any significant changes at this stage in how they’re shopping.” But, he added, “we do know, we’ve seen and we heard through our own studies that people are certainly focused on inflation and they’re seeing that in their daily lives.”

Inflation drives up the cost of fuel and food across the nation. The Consumer Price Index rose by 7.5%The Labor Department reported that January was the most rapid jump in over 40 years. Food costs are up 7% over the past year — and grocery is Walmart’s largest sales category.

Those rising costs have become a focal point for investorsThey are monitoring to determine if spending habits change in America. A second factor could be a problem: Consumers might spend more money on transport and dining out as the omicron wave in Covid diminishes.

Walmart reports fourth quarter fiscal earnings topped Wall Street’s expectationsAnd the company reiterated its outlook for the year. Higher prices were a part of some retailer’s quarter-end sales. U.S. sales of same-store items, an important retail measure, rose by 5.6%. The increase in store traffic was 3.1%.

Biggs stated that the retailer keeps shareholders and customers in mind while it attempts to strike a balance between profit and price. It is adopting a balanced strategy, increasing prices on certain grocery items while not raising others.

Even though costs may be passed on in part, it is still your responsibility. [shopping]”You may be able do some things in one part of the basket and make it work,” he stated.

In store aisles, Walmart has big signs advertising temporary price reductions — called “rollbacks.” John Furner, Walmart U.S. CEO, stated on an earnings call the retailer now has as many rollbacks as at the end last year.

Walmart stocks many major brands of consumer goods, including PepsiCo, Coca-ColaAnd Procter & Gamble, have already hiked prices — and warned more increases may be on their way.

Doug McMillon CEO stated that the retailer is open to talks with brands, and draws on its extensive relationships for pricing down.

During the earnings call, he stated that “the amount of communication between our suppliers and ourselves is always high.” It’s especially high at the moment.” 

The retailer is able to handle inflation due to having experienced similar situations in Mexico, South America and elsewhere. Plus, Walmart shoppers tend to buy more when price is the main focus.

He said that inflation can make middle-income families and lower-income families more price sensitive during times like these. This is to our advantage.