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RBC downgrades Dollar General, cites inflation and dwindling stimulus money

A sign inside a Dollar General store in Chicago.
Jim Young | Reuters

The combination of an economy returning to normal and rising prices could squeeze Dollar General's growth prospects, according to RBC Capital Markets.

Analyst Scot Ciccarelli on Wednesday downgraded the retailer to sector perform from outperform, saying a rebounding economy combined with dwindling stimulus funds and rising prices for lower income customers could limit the customer base for the discount store.

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