A new study sheds light on inflation’s impact on consumer spending.
Gasoline, groceries, and dining out top a list of the 12 most acute inflation pain points for consumers, according to a study by First Insight. The company released the report the same day that the US Bureau of Labor Statistics said that inflation has hit a new 40-year high of 8.5% in March.
The First Insight report lists the 12 areas of spending where price increases are having the greatest impact on consumers’ daily lives. Here is the full list:
- Gas
- Groceries
- Dining
- Vehicle prices
- Household goods
- Rent/mortgage
- Apparel, footwear & accessories
- Entertainment & recreation
- Healthcare
- Education
- Travel, hotels, flights, vacations
- Childcare
“Soaring gas and food prices are just the tip of the iceberg for consumers today,” said Greg Petro, CEO, First Insight. “Record-high prices on essential items will negatively impact both consumers’ confidence and their spending power.”
Categories such as apparel, footwear, accessories, travel and entertainment may struggle as consumers cut back on discretionary spending, advised Petro.
“It will be critically important for companies to remain close to their customer base to predict how they are going to respond to all the changes out there,” he noted.
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