According to a recent report from First Insight, a staggering 97% of 1,000 U.S. adults surveyed indicated they are shifting their financial decisions to accommodate high inflation. Overall, 75% of respondents said they have less financial confidence at this time and are mainly prioritizing their spending towards prices of groceries, gasoline, housing, and healthcare.
In a further attempt to alleviate costs, 82% of respondents reported they seek out sales and promos. 28% said they are just not shopping as much, and 40% percent reported keeping a budget.
The report also noted that travel has decreased, as 42% of respondents said they have reduced the amount of time spent driving. Another 42% said they have opted to dine out less due to gas prices and the high cost of groceries, and 35% reported they cut back on vacations. Most respondents stated, however, that they have not cut back on beauty/personal care or pet care.
According to First Insight’s Chief Executive Officer, Greg Petro, “rising prices will continue to impact all businesses for the foreseeable future” due to the current inflation rate of 8.5 percent. Despite initial hopes that consumers’ financial confidence would improve as the pandemic slows, Petro added that many industries may “may be faced with yet another difficult year,” which includes travel and hospitality.
In the future, Petro said, “Companies must work to get an immediate understanding of how consumers are going to change in the days and weeks ahead by engaging with them directly to anticipate and respond.”
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