Here’s how Americans are adjusting to inflation
Our latest Thought Starter shares research measuring the impact of inflation, and compromises that Americans are making in their effort to cope.
According to a recent Ipsos U.S. Omnibus survey, 71% of Americans say inflation has impacted their spending and especially so when it comes to eating out, groceries, vacations, remodeling their homes, and car travel (due to gas prices). Even visits to the local coffee shops are being skipped by 24% of Americans.
Read our latest Thought Starter for more insights about who is being impacted the most, and other tough choices Americans are making. This valuable information allows marketers and manufacturers to identify new ways to optimize product packaging, messaging, or identify growth with potential product extensions.
From vacations to groceries, here’s how Americans are adjusting to inflation
- Most Americans (71%) say inflation has impacted their spending.
- Women are especially likely to have changed their spending in the last three months as compared to men.
- Eating out, groceries, vacations, remodeling and gas prices are among the areas consumers are modifying; education spending appears to be least affected by current inflation levels.
You don’t have to look far to see how inflation is impacting most Americans and industries. Supply chain issues, business closures and pandemic relief benefits are part of the reason we are experiencing the highest level of inflation in forty years.
If you have been adulting the last 20 to 40 years, you realize inflation is just part of the economic cycle. Ipsos’ North America Omnibus wanted to see how this recent loss of purchasing power was affecting Americans. As we continue to hope for life to return to “normal,” many of us are shifting our spending priorities as we wait for inflation to level off.
Americans reacting to rising prices
Most (71%) Americans say inflation has impacted their spending. Women are especially likely to have changed their spending in the last three months as compared to men. Very few, under 10%, say inflation has not affected their spending.
The automotive and housing market have experienced significant price increases due to low inventory and high demand. Almost half (49%) of Americans say they will hold off plans for any major purchases, such as automotive or real estate, this year due to inflation.
Food prices causing major cutbacks
With rapidly raising food costs, Americans are curtailing eating out and grocery store spending. According to the Bureau of Labor Statistics, food prices drove much of the inflation rise this January. Vacations, remodeling and gas prices are also areas consumers are modifying. Education spending appears to be least affected by current inflation levels. Surprisingly, a full quarter (26%) of Americans indicate they don’t plan on cutting back on any of the following activities. That is especially true for those aged 55 and older (33%) and among the $100,000 and over income households (36%).
Don’t see inflation ending soon
Most Americans (41%) don’t expect high inflation to end until 2023 or later. A third (36%) say they don’t know when it will end since it will be hard to sustain today’s climbing prices, but it seems no end is in sight.
Many Americans now think inflation will be here longer than they did even a few months ago: An Ipsos’ Omnibus Digital study from December 2021, showed 30% thought inflation would last beyond 2022.
There is real concern among Americans (90%) that prices will continue to rise through 2022. A lucky (and calm) two percent do not show any concern at all.
It’s hard to keep up
Overall, most Americans (65%) feel today’s cost-of-living increases have not kept pace with current inflation levels. Younger adults are much more likely to feel like their cost-of-living increases are keeping up with rising prices than those 35 or older.
Why Ipsos eNation Omnibus
Want to learn more about how Americans feel? Try Ipsos eNation Omnibus. One of the most important aspects of marketing is knowing your audience. The Ipsos eNation Omnibus is the ideal marketing tool because it can quickly measure public opinion and consumer attitudes about any topic, any time. Our rapid response research is affordable, efficient, accurate, flexible and includes overnight and custom study options. These actionable Ipsos insights can be incorporated into your marketing strategy immediately.
Our Inflation Study provides details on how Americans are responding to recent inflation levels and changes in consumer spending. This valuable information allows you to optimize messaging on an infinite number of products and categories or identify growth with potential product extensions. If you would like complimentary access to this Thought Starter Inflation Study, a copy of a past Thought Starter omnibus study, or to learn more about eNation Omnibus, please contact us today.
Ipsos eNation Omnibus Thought Starters still available:
- 2021 Year-In-Review
- Back-To-School Spending
- Summer Vacations
- Our Homes during COVID
Ipsos U.S. eNation Omnibus completes five national surveys each week. Ipsos Omnibus offers a variety of services, including overnight, custom, and digital studies. Data for this study was generated by an Ipsos eNation online omnibus study of 1,005 American adults, age 18 and older, conducted February 11–14, 2022. If you would like complimentary access to this Inflation Study, or to learn more about eNation Omnibus, please contact:
Senior Vice President, U.S. Ipsos Observer