Consumers are changing their purchasing behavior due to inflation concerns, according to a survey conducted by data and tech company Numerator. Inflation was up 5.4% in June 2021 from the previous year, the highest it’s been since 2008. In response, more than half (55%) of consumers have changed how they shop.
The company surveyed 600 consumers in June and July, and the results revealed concern about prices, as well as plans to continue to change purchasing behaviors.
Most (83%) survey respondents have noticed price increases on their commonly purchased groceries and household essentials. Over half (66%) said they expect prices to increase even more within the next six months, with 50% expecting a slight increase and 16% expecting a significant increase.
In terms of responding to the inflation, consumers plan to take several measures:
- Switching to lower-priced brands: 49% of respondents said they plan to switch with slight inflation, while 60% plan to switch with significant inflation.
- Looking for additional promotions and discounts: 45% will look for additional promotions and discounts with slight inflation, compared with 50% who will do so with significant inflation.
- Reducing discretionary spending: 36% plan to reduce discretionary spending with slight inflation, and 49% plan to do so with significant inflation.
Purchasing power makes a difference. More than half of respondents (54%) said they are significantly concerned about future increases in price, with consumers who have lower purchasing power 1.7x more likely to be more concerned (39%) than those with high purchasing power (23%).
Eric Belcher, CEO of Numerator, commented: “Over half of consumers have already changed purchasing behaviors in today’s inflationary environment. Forward-thinking brands and retailers move at the speed of consumers so the time-to-insight is critical.”
