The cost of living crisis continues to grip consumers despite easing inflation

The Ipsos Cost of Living Monitor is a 32-country study looking at how people are doing financially and their expectations for the future. In its sixth edition, it uncovers that despite inflation rates slowing in many countries the number of people struggling financially remains high.

Key findings in the report include:

• In 29 of the 32 countries surveyed a majority think it will take more than a year for inflation to return to normal or that rising prices will never return to normal. A growing number in France, Belgium and the Netherlands share this cautious outlook. 
• Since we started the Ipsos Cost of Living Monitor in 2022, the number of people finding it financially difficult has changed little (29% in June 2022, 26% in April 2024). The macro-economic realities may be evolving, but the US, Canada, Australia and Italy still have as many saying they are struggling as they did two years ago. There are some countries, in particular in Northern Europe, where the proportion saying they are financially comfortable is rising.
• While the “Global Economy” is seen as the biggest driver of rising prices in a country, (70%), 68% blame the policies of their government. In this issue, 20 countries have seen an increase in the proportion saying their government is making inflation worse compared to November 2023.
• Fewer people think the rate of inflation is set to rise in their country. Fifty-eight per cent think inflation will continue to increase over the next year, 17pp lower than June 2022. 
• In addition, 48% think interest rates will rise over the next year, down from 58% last autumn and 64% back in June 2022. Twelve countries have seen a double-digit decline on this measure since November 2023.
• Looking ahead, 29% think they will have less money to spend in the next year, while 30% think their disposable income will rise. While these figures do mark an improvement to the pessimism people felt when this survey series started in 2022, it has changed little in the last 12 months.

Download the report