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Impact of inflation on consumer behavior - Statistics & Facts

Due to supply issues caused by a number of factors, including increased consumer demand, Russia’s invasion of Ukraine, and the coronavirus (COVID-19) pandemic, inflation around the world had risen considerably. In other words, these events caused the cost of living to increase practically everywhere. Overall, the global rate of inflation was estimated at roughly 8.75 percent in 2022 compared to 2021, which is a major spike in comparison to previous years analyzed. To give an example of what this means, in the United States, early 2022 had been difficult for many consumers, especially low-income households who already struggle to get by financially. And although rising prices did not massively impact everyone, there were few U.S. consumers who said the recent wave of inflation did not influence their financial situation at all.

What has gotten more expensive?

The current economic climate is causing a number of issues for consumers worldwide, from rising prices for everyday products to problems with product unavailability and delivery delays. Some of the areas that have gotten more expensive include typical consumer goods, such as groceries, but gas prices and housing costs have also shot up. According to a study fielded in April and May 2022, nearly 60 percent of millennials surveyed worldwide experienced financial hardship when filling up their cars. Going forward, people are expecting to spend more money than before for all kinds of matters, from utility bills to vacation trips.

Global consumer reception

Due to recent rises in inflation, people have been worried that life has become and will remain more expensive. Given its impact, it is unsurprising that it was the leading concern among consumers worldwide as of January 2023. This has had a number of consequences, one being that consumers have been trying to be extra mindful of what they buy and how much they spend. A significant percentage of shoppers across the globe have started buying cheaper alternatives to the products they usually buy while also seeking out more coupons and/or discounts than they used to. Furthermore, people planned to minimize spending by traveling and dining out less. That said, there are certain things many consumers would not willing to let go of, even at a time like this (e.g., TV subscriptions and gym memberships).

While this sudden spike in inflation may not last forever, the future is not yet certain. In truth, a significant share of consumers believed it could get worse before it gets any better. When asked about it in April 2022, over 60 percent of struggling households in the United States expected the impact of inflation to become greater in the next few months. People living more comfortably, on the other hand, did not expect their financial situation to worsen as much.

Inflation and its impact on the holidays

Towards the end of 2022, many were wondering how inflation might impact shopping and spending behavior during the holiday season. Whether it was to a small or substantial degree, nearly 60 percent of consumers surveyed in the United States and Canada stated that they intended to cut back on spending over Black Friday and Christmas. In other words, less than half of shoppers in these two countries did not plan to spend less than usual due to the rising cost of living. Day-to-day business has also gotten more costly for retailers, which is why many are devising strategies to minimize operating costs over the course of the holidays. One of the leading ways in which retailers around the world planned to keep costs down is by increasing the cost of shipping.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by D. Tighe, Mar 27, 2023

Key insights

Forecast change in inflation rate worldwide due to the Russia-Ukraine war in 2023
1.9%
Leading aspect of life negatively impacted by inflation among U.S. consumers
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48%
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