Consumers have had enough of price increases and now they're pushing back, according to earnings calls from several consumer-centric companies today.

Why it matters: Today's Consumer Price Index report showed inflation cooling off, as price increases since the pandemic reoriented consumer behavior.

PepsiCo CEO Ramon Laguarta signaled that the company's price increases might've gone too far.

• "Some parts of the portfolio need value adjustments," he said of the Frito-Lay owner's snack products, adding that "for particular consumers, we need some new entry price points."

At food maker Conagra Brands — whose products include Duncan Hines desserts, Hunt's ketchup and Swiss Miss cocoa — consumers are still adjusting to what CFO David Marberger called "significant" price increases over the last two to three years.

• CEO Sean Connolly says shoppers of all income levels have been exhibiting "value-seeking behavior."

At Delta Air Lines, the company has benefited from a surge in travel over the last few years — but consumers aren't forking over more cash for tickets.

• In fact, airlines have been in a "race to the bottom on domestic ticket prices," WSJ reported, as excess capacity is poised to trigger what Delta CEO Ed Bastian called "pretty significant corrective action."

What they're saying: "Consumers are more sensitive to price increases after several years of high inflation," Comerica Bank chief economist Bill Adams wrote today.

• "That is making businesses more cautious about raising prices" and, in turn, is leading to "slowing inflation," Adams continued.

Reality check: Companies may not benefit from more price hikes, but the costs of goods have largely stabilized, which could preserve their profits.

• "Businesses' input costs have been more stable in the last 18 months, reducing upstream pressure on them for price increases," Adams added.

The bottom line: Consumers who were helpless against price increases are regaining power.

It now looks like we are going to get a rate cut this quarter after all.

Driving the news: After this morning's very benign inflation report, the CME Fed Funds futures markets spiked to pricing in a 95% probability that the Fed will cut in September, if not this month.

The big picture: At the start of this year, markets were sure there would be at least one rate cut by September, with most market participants expecting five cuts by then.

• But inflation and employment numbers both came in hotter than expected, and it started becoming obvious that many cuts wouldn't be arriving anytime soon.

The bottom line: The doves are back, although the timetable for getting to five rate cuts has been pushed back to at least April, per CME traders.

💊 The FTC plans to sue pharmacy benefit managers CVS Caremark, Express Scripts and OptumRx over insulin prices. (Axios)

🚙 Nissan will reportedly discontinue the Versa and Altima sedans. (Automotive News)

⚖️ Archegos founder Bill Hwang and former CFO Patrick Halligan were found guilty of multiple charges late Wednesday. (Axios)

🚙 Lyft's safety report shows more fatalities, fewer serious sexual assaults (Axios)

Chicken Soup for the Soul Entertainment converted its Chapter 11 bankruptcy case to a Chapter 7 proceeding and will liquidate its assets, including Redbox.

Why it matters: The shutdown of more than 24,000 rental kiosks might be the nail in the coffin for the flatlining video rental market.

The bottom line: CSSE's decision to buy Redbox in 2022 burdened it with nearly $360 million in debt.

• A Redbox lawyer said the company's lenders aren't willing to finance the business anymore, according to the Wall Street Journal.

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Joby Aviation is developing a hydrogen-powered version of its vertical takeoff and landing aircraft (eVTOL) that could enable longer routes between cities.

Why it matters: Hydrogen fuel cells — already used in cars, trucks and industrial equipment — could be a game-changer for the aviation industry, which is under intense pressure to reduce its greenhouse gas emissions.

Driving the news: Joby said today it flew a successful 523-mile demonstration flight using a first-of-its-kind hydrogen-electric air taxi.

• A trail of water vapor, seen in the photo above, is the only emission.

How it works: Hydrogen-powered aircraft can burn liquid hydrogen directly in an engine, or they can use gaseous hydrogen in a fuel cell system.

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