Consumers have been shopping around and trading down as the cost of essential items such as food, energy and fuel has soared by an average of £145 per month.
The latest research from market research company KPMG delved into how the rising cost of living has impacted household budgets so far this year. It found those aged 35-44 were the most affected; paying around £194 more a month than they were in January.
Consumers are taking a number of steps to manage rising prices. One in three of those questioned said they were trading down and buying more own brand products, while the same number reported buying more products on promotion or discount.
At the same time, a quarter – or one in every four shoppers – said they were shopping at less expensive retailers as well as buying fewer items.
Non-essential purchases are also suffering, with almost two-thirds (60%) saying they had been buying the same or less than they had done last year. Value for money has been the most common consideration when purchasing throughout 2022, followed by quality, and then sustainability.
Elsewhere, consumers that had savings at the start of 2022 now have just 43% remaining, with a third of those using their savings to help meet their essential costs. One in ten have already spent all their savings on offsetting rising essential costs.
KPMG’s UK head of consumer markets, Linda Ellett, said it was clear that consumers are responding to the rising costs where they can, by “altering how much they buy, what they buy and where they buy it”.
“Retailers are also responding and will need to continue to be data-driven to anticipate and adapt to changes in demand.”
She also noted that these figures were collated before October’s energy price rise.
