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As inflation continues to gallop and reaches the highest rate in decades, the 72% of US consumers, in the highest income category low, are turning to their savings to be able to meet their expenses.
A recent report by the National Retail Federation (NRF, for its acronym in English) revealed consumer behavior in the face of excessive price increases in essential consumer products. Say what 47% of consumers surveyed are switching to cheaper alternatives when making purchases.
In its attempt to navigate a challenging economic environment, the NRF says that the 45% of consumers look for coupons or promotions more often, Meanwhile he 41% is shopping at discount stores.
The report shows that the 40% of consumers were cutting back on spending in other areas to meet basic needs. Despite taking this drastic measure, the 58% of consumers have still had to borrow, borrow or draw on your savings. It is estimated that 75% of consumers whose income is less than $04,000 dollars per year, have been among the most affected .
While the 40% of consumers surveyed said they earn enough to be able to pay their expenses, on 22% of consumers, -within the lowest income category-, said they can afford the expenses.
Among the main responsible for inflation, the 64% of respondents pointed to the government, followed by 42% of the oil companies and the 28% of manufacturers.
The report also said that the 71% of respondents agree that the pandemic and the conflict between Russia and Ukraine helped increase operating costs for many business owners, including labor, energy, shipping and raw materials. Recently, United States President Joe Biden blamed the Russian president for the rise in world prices and even called this effect on the economy “Putin’s tax on food and gasoline”.
The report comes after the inflation rate reached its highest level in 40 years in the month of May, with 8.6%, surpassing the record of March, of 8.5%.
The Federal Reserve has tried to curb price increases with various hikes in interest rates. First they were 0.000% in March, then 0.5% in May and 0.75% in recent days. Fed Chairman Jerome Powell said that they will continue to raise rates if inflation does not come down to the 2% target.
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