83% of Americans Are Belt Tightening Due to Inflation Pressures
83% Of Americans Are Belt Tightening Due To Inflation Pressures
Word Inflation on up trend arrow, with financial data visible on the background.getty
The good news is that the country is opening up again after the severe disruptions caused by the pandemic. But there is a lingering impact. Sticker shock. The US economy is picking up steam as the Labor Department is reporting the fastest pace of inflation since 2008. In April, the Index rose +4.2% compared to the same period last year. A recent survey found that 72% of those interviewed say that their income has not increased, while 86% of the respondents say they are experiencing price increases. This is taking place just as consumers are eager to be out and about and, hopefully, find some normalcy again. It is causing concern for many about shopping for the rest of the year.


Shopkick surveyed 19,000 consumers across the United States to gain insight into consumer awareness about price increases and what behavioral changes they may be taking to fight the accelerating inflation rates. The survey on which this report is based was conducted between May 14 -17, 2021.

Here are some of the key findings:

1.   77% of Americans were aware of an acceleration of the inflation rate. In fact, 54% were very concerned about it. 42% plan to tighten their budgets lightly and 41% plan to tighten their budgets significantly.


2.   86% indicated they experience price increases on everyday goods and services. Notably, they pointed to on groceries (96%), gas (93%), dining out (57%), and clothing (42%).
3.   In grocery stores, increases were noted up and down almost every aisle. Highest increases were seen in meat and seafood (79%), followed by dairy products (76%), fresh produce (71%), and paper products (66%). Consumers went on to mention beverages (60%), cleaning supplies (59%), personal care items (45%), bread and bakery items (43%), cereal (40%), canned goods (37%), snack items (35%), and pasta and grains (26%).
4.   Consumers have already been adjusting their shopping as a result of these inflationary pressures. 59% of the respondents says they have switched to less expensive options. 69% of the respondents say that brand names are not important in times like these. According to the report, 85% of the Americans that were interviewed said the same at the start of the pandemic, citing price as being most important factor shaping their decisions.

5.   The report highlights the popularity of private label merchandise. Consumers are saying that they are now choosing less expensive labels and 71% will continue to purchase private labels products even if prices return to normal level.

Inflation is likely to continue to be a major threat as continued supply chain issues and deficit government spending forces prices to rise further. At a time when the consumer is cautiously going back to some stores to shop, I fear that they will see prices that will continue to rise in all categories from food to apparel. It makes store planning very hard. It is likely that both grocery and general merchandise chain stores will be very much aware of the pricing forecast and plan additional promotional events to generate traffic in their stores and ensure consumers that value is being offered. The inflationary pressures add another question mark to the outlook for the rest of the year.


Traditionally, the period between October and Christmas Eve has been an intensely promotional time, culminating in the frenzy around Thanksgiving Day that sets the tone for the final holiday selling weeks. With inflation causing the average consumer to think twice before spending on gifts for the family, I expect even more promotional activity. It is likely that consumers will continue to evaluate each item before purchase since inflation continues to depress the shopper’s ability to stay within her budget.
Shopkick, which produced the report, is a shopping rewards company. The company provides tracking to monitor consumer engagement along the path to purchase. The company has a pay for performance model.
