Nearly 92 percent of consumers have reduced their spending on nonessential goods like apparel, appliances and home decor, according to a new CNBC and Morning Consult survey. Ninety-two percent of Americans with household incomes between $50,000 ad $100,000 said they were “somewhat” or “very worried” about the price of goods.
It seems that Americans have found inflation relief by cutting their spending in all aspects of their lives.
High-income households that earn more than $100,000 per year decreased their concerns about inflation when compared to their thoughts from last year.
It’s important to note that the survey sampled only 4,400 adults.
According to CNBC News, this cautious spending behavior is in line with predictions from big-name retailers like Walmart and Target.
Consumers are complaining about inflation prices causing them to readjust their budgets and spending. This has been affecting every class of Americans, particularly those who make between $50,000 and $100,000 a year.
The respondents to the survey also mentioned they will continue to cut spending the rest of the year and have drastically cut back on essential items like groceries and gas, as well as nonessential goods like entertainment and clothes.
The majority of inflation relief spending has come from clothing. Apparel has seen a drastic decrease in consumer spending by 63% since the beginning of the year.
Restaurants and bars suffered the next highest amount of reduction in consumer spending.
In the grocery sector, consumers have been buying lower-priced alternatives of their usual choices due to increased prices or shrinkflation.
Experience-based spending and travel have remained more robust as opposed to the good category.
Finally, a majority of lower-income households are holding back when it comes to electronics, and appliances are only being replaced as a last resort while upgrading appliances is on the decline.
With so much power in the hands of the consumer along with cultural influence, each and every industry and sector will experience different degrees of inflation relief spending.