Consumers spending more as essentials inflate – Revolut
Spending on groceries, restaurants and fuel is increasing month-on-month, according to banking app Revolut, as consumers prioritise while inflation surges.
In contrast, spending on clothes shopping, and leisure activities such as sports clubs and cinemas has dropped.
Supermarket spending was up 6.6% per consumer in July, compared to June.
However, looking back since last year, spending on groceries has actually dropped by 4% per consumer in July 2022, compared to July 2021, suggesting many are looking for cheaper products.
As petrol prices lower across Ireland, the data shows that spending on fuel at petrol stations was up 3.9% per consumer in July, compared to June.
Spending on fuel was up 26% per consumer in July 2022, however, compared to July 2021.
Many took to public transport, as spending on buses was up 6.5% per consumer in July, compared to June, and spending on trains was up 6.6%.
Overall, the increase in spending on transport was up 6.3% per consumer in July 2022, compared to June 2021.
McDonald’s recently said it was increasing the price of its cheeseburger to €1.70, and Revolut’s data shows that spending at fast food restaurants was up 5.7% per consumer in July, compared to June.
As a whole, spending at restaurants rose by 11.3% per consumer in July, compared to June. Additionally, restaurant spending was up 21.6% per consumer in July 2022, compared to July 2021.
The report suggests holidaymakers are cutting back on parts of their spending, as the prices of holidays go up.
Spending on airlines was up 13.7% per consumer in July 2022, compared to July 2021, spending on cruise lines was up 52.5%, tourist attraction spending was up 19%, and spending on hotels and resorts was up 80.5%.
However, the data also suggests that some travel-goers are skipping the shops. Airport spending was down 11% per consumer in July 2022, compared to July 2021, spending at duty free specifically was down 18.8%, and spending on car rental has not kept up with inflation and was down 1%.
Overall, the increase in spending on travel was up 16% per consumer in July 2022, compared to July 2021.
As inflation rises, consumers are not just cutting back on supermarket luxuries. Spending on clothes shopping and leisure activities is decreasing or stagnating.
Overall, spending on entertainment was down 8.2% per consumer in July 2022, compared to July 2021, and spending on shopping has not kept up with inflation and has only seen a rise of 1.7%.
A spokesperson for Revolut said the latest data suggests that Irish consumers are adapting their spending patterns to cut back on leisure activities such as clothes shopping and days out.
“Many consumers are looking to prioritise spending whilst inflation surges. The data suggests consumers are looking for cheaper brands in the supermarkets in order to keep money aside for treats at restaurants,” the company said.
“Similarly, the decrease in spending on clothes and days out could be to prioritise travel. After a couple of years of restricted travel, consumers are looking for a summer away. However, they’re being careful as to where they’re spending, focusing their money on hotel and flight bookings, and dodging the airport shops,” it added.
Article Source: Consumers spending more as essentials inflate – Revolut – RTE
