According to a new survey, consumers are reducing their spending on eating out and buying clothes as inflation soars.

Tighten your purse just as High Street wants a meaningful recovery after Covid.

According to a survey of more than 1,000 people by accounting firm KPMG, 84% of consumers have reduced eating out and 78% have reduced the amount of money they spend on clothing. According to the survey, 74% of consumers are also cutting their DIY budget.

And, worrying for Irish businesses, 40% of consumers here rank Irish purchases as the least important factor in making a purchase decision. This is because 64% of consumers say that getting the best price is a top priority.

Soaring inflation is pushing people’s wages up, and everything from fuel to food is rising.

Pump prices have once again jumped to more than € 2 per liter, despite the government temporarily lowering the level of excise taxes on gasoline and diesel.

Without a 20 cents excise tax reduction per liter of gasoline, the price of gasoline would be close to € 2.50 per liter. Excise tax cuts will continue until the end of August.

According to a KPMG survey, more than half of consumers over the age of 45 buy motor fuel frequently.

Eurostat believes Ireland’s inflation rate reached 8.2% in May, compared to 7.3% in April.

Russia’s invasion of Ukraine has pushed up the prices of staple foods such as fuel, bread, pasta and cooking oil.

Keith Watt, Head of Retail at KPMG, said:

“The findings feed business leaders in many sectors, including hospitality and leisure, and already face unique challenges in terms of staff availability and increased input costs,” he adds. rice field.

With the removal of Covid-related restrictions, consumers have been able to reduce their reliance on online purchases.

However, according to a survey, despite a clear move towards physical shopping, 46% of people still avoid large shopping centers and city centres because of Covid’s fears.

But that’s less than the 61pc that avoided such places in December.

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