U.S. and Latin American inflation is at peaks not seen in the last 30 years.
Where are shoppers cutting back? Our internal studies show that 58% of people are cutting back on entertainment, 48% are reducing spending on major purchases, 38% are cutting back on eating out, and 32% are reducing spending on food. The cutback in food spending is significant, as prices have already risen double digits in the region, so the cutback means a reduction in the amount of food in the household. The reduction in food spending is mainly due to prices (77%), lack of availability of some products (42%) and no promotions (37%).
Cutting back on food? Forty-two percent of shoppers are cutting back on indulgent foods and switching to cheaper brands.
To address inflation and help your consumer, we advise you to be cautious with price increases or cutback moves. Contact our team and learn about our developments for inflationary pricing times.