84.51°: Inflation Concerns Remain Ahead of Summer Months
According to the latest Consumer Digest report from 84.51°, consumer concern over inflation is still high, but at its lowest level since October of 2022.
While 65% of consumers say they are “extremely concerned” about the cost of goods and services, and 32% of shoppers believe inflation at its current level will end in 12 months or less and 28% think it will end in 1-2 years.
According to the Kroger-owned data firm, overall, 21% of consumers feel uncomfortable with their finances, with 62% feeling neutral, and only 17% feeling comfortable. A third of those surveyed (33%) said they can cover monthly expenses but have little money left over, and 27% of consumers can cover monthly expenses but are living paycheck-to-paycheck.
The report on inflation consumers as private label sales continued to rise in Q1 of 2023, with dollar volume rising 10.3% year-over-year as of March 26.
“As inflation persists, shoppers are most concerned with rising prices in everyday necessary purchases like fuel, utilities and food,” said 84.51° in the report. “Zeroing in on how they put food on the table, shoppers are increasing consumer food from grocery stores (+5% month-over-month), despite only 25% saying they enjoy grocery shopping and 39% saying they enjoy cooking.”
Despite the maintained concern about inflation, the April Consumer Digest- Special Inflation Edition states that most consumers are still planning to enjoy the summer by traveling (61% of those surveyed), but will adjust their behavior to combat high prices. Half (50%) of consumers said they will pack/prepare food at their destination instead of dining at restaurants. 48% of those traveling to a destination will drive instead of fly and 47% will visit places with free admission.