Survey: Grocery costs remain biggest painpoint for consumers
Inflation is continuing to have an impact on how consumers shop – with grocery prices front and center.
Most (82%) consumers are concerned about inflation’s impact on daily necessities, according to a survey of 2,000 American adults from Qualtrics on behalf of Intuit Credit Karma. Three-quarters (77%) of those surveyed say they have felt the most significant increase in grocery costs, followed by utility bills (39%) and gasoline (37%).
One-in-five (20%) respondents say they are buying more unhealthy food for themselves and their families because it’s the cheaper option. A quarter (25%) admit to occasionally skipping meals, a habit even more common among Gen Z (32%). Twenty-one percent say they have had to sacrifice other necessities to afford their groceries.
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To soften the blow, consumers say they are buying more store-brand products (56%), shopping at discount stores such as Dollar Tree or Dollar General (35%), or prioritizing shopping at retailers that offer promotions (22%). About one-in-six (17%) Americans have applied, or considered applying for food stamps, while others report relying on food banks (16%).
Three-quarters of Americans (76%) say that their money doesn’t go as far as it did three years ago, according to the survey, and nearly a third (31%) say they’d need an additional $1,500 to $2,000+ per month to afford the same standard of living from three years ago. This feeling is more common among Gen Z and millennials, 23% and 24% of whom respectively say they’d need $2,000 or more each month to maintain the same standard of living they once had.
Despite the ongoing cost pressures, younger consumers are more resistant to making budgetary changes. Two-thirds (64%) of those surveyed say they’ve accepted that higher prices for essential items are likely here to stay. However, Gen Z is not as willing to make the necessary adjustments to their budget. While almost half (48%) of Gen Zers are limiting or halting non-essential spending, it doesn’t compare to the same willingness among millennials (55%), Gen X (73%) and boomers (77%).
“The rising cost of essentials, particularly groceries, is putting immense financial pressure on American households across various income levels, forcing people to make difficult tradeoffs that may be suboptimal for their health,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma.
