Who determines prices?

Tim Watkins latest piece concludes that:

Since everything in the economy depends upon energy, and since the energy cost of energy is rising and can no longer be brought down, then we know that theoretically, the economy must shrink. We also understand that this forced de-growth is likely to begin in the discretionary sectors of the economy. And because in a shrinking economy it is ever less prosperous consumers rather than businesses who set the price, we look set to see a wave of bankruptcies rather than a wave of inflation in the near future.