Dining out tops the list of discretionary spending cuts consumers will make to combat inflation’s effect on their wallets, with 42% of consumers deciding to save on eating out according to First Insight’s new inflation report. The report also revealed that 33% of consumers will cut back on entertainment costs and 30% will reduce their spending on organic or premium groceries as well as vacations. Spending on fast fashion will be cut by 28% of consumers.
In contrast, the data show that consumers are cutting back the least on beauty and personal care, along with pet services.
The report found overall that high prices for gasoline and groceries are having a trickle-down effect on discretionary spending across the board.
The top categories in which consumers will reduce spending to cope with rising prices are listed below.
at Chain Store Age.