The current situation:
According to the U.S. Bureau of Labor Statistics, the consumer price index rose at an annual pace of 4% in May, the lowest reading in more than two years. However, prices for many necessities remain stubbornly high, including food at home (5.8%), daycare/preschool (6.4%), and electricity (5.9%). And those kibbles for Fido will set you back an additional 13.8% compared to a year ago.
What consumers are saying:
Our Consumer Pulse report for this week found that 40% of Americans are worried, with inflation being the number one concern. Inflation and the threat of a recession have taken a toll on consumers’ time and attention. For example, compared to a year ago:
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53% say there are more demands on their time.
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39% say they are less brand loyal.
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36% claim to be less engaged with brands.
The Outlook:
All is not doom and gloom – 66% of respondents say they are happy with their living situation. In fact, 73% say they have the ability to do things they enjoy. Brands and retailers should continue to focus on how they can make life simpler and more enjoyable for consumers. As the saying goes, always look on the bright side of life!
Do you want to take the Pulse of your customers? Our Insights team will partner with you to design a study that will help you better understand your customers and their problems, and how your brand can win at retail.
To get additional insight into what this means for brands and retailers, read the entire study.
