But how are consumers really tackling this growing economic problem? A new study from GWI sheds light on the very matter.
If you’ve recently looked up inflation through a search engine, you’ve probably come across plenty of insights. This includes a rise in food prices, fuel, and even the costs of tickets for traveling. It’s actually quite depressing.
Things are very different from what we saw months ago whereby today, more than 50% of consumers claim their costs of living have deeply increased.
While financial confidence may not have been shattered too much, so many people claim to be making smarter decisions in terms of spending as a precaution. While food prices have majorly risen, it’s not the topmost concern that users have in terms of limiting spending.
Instead, they’re targeting luxury goods, entertainment options, and even clothing- yes this is where people are willing to compromise.
When inflation struck, a lot of consumers focused on activities taking place outside the home. They started to make cuts in areas that were in their control. For instance, you can’t stop the rise in fuel prices due to the war in Ukraine or the increase in ticket prices due to the pandemic. It’s just not in our hands.
However, you can compromise on spending big at luxe-themed resorts or dining at the finest eateries in town. But wait, if you think such decisions would end up costing big time to industries linked to luxury and entertainment, well, you're mistaken.
As a whole, people are reprioritizing and there’s truly nothing better than that. For instance, people in the US and UK prefer to buy now and pay for later decisions. And while that has the risk of late fee payments, such modes of payment are definitely a convenience.
Next up, we’re seeing trends related to spending fewer amounts of money on luxury-themed items. However, it’s definitely not a signal that shoppers aren’t indulging in them completely. Yes, it has declined significantly but has not been eliminated completely.
There are still people buying jewels, watches, and handbags and since all firms can’t really go down too much on prices, they are adding more value to goods and services. So people are willing to buy cheaper products over not buying anything at all.
Similarly, travel isn’t declining anytime soon. After all, we’ve just witnessed more than two years of the pandemic so that makes sense. Many have made and will make the most of their holidays during the year.
Stats have revealed that although we’re still not up to the same level as the past, we’re slowly but surely getting there. People just aren’t willing to compromise on their vacations but similarly, they’ve been forced to think wisely and make smarter choices.
As the costs of food and other similar utilities continually rise, more and more people are getting price-conscious while in the markets. Discounts are being welcomed with open arms as are visits to the dollar store.
Stats revealed how more people are visiting places where they can attain commodities at discounted prices because there could be nothing better.
And then there is the rising concern of fuel that has left many consumers to rethink their commuting routes. For instance, in Europe, you’ll find people in search of traveling to their workplace through means other than the car. And that’s just so they could save up on fuel.
This has also allowed for a decline in fares for public travel and that’s welcomed with open arms.
So as you can see, the changes due to inflation are plenty.
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by Dr. Hura Anwar via Digital Information World
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