Insight

Is inflation pushing consumers to the edge?

KPMG Consumer pulse survey | Summer 2022

According to the results of our Summer 2022 Consumer Pulse Survey of 1,000 consumers, 87 percent of survey respondents are concerned about inflation, with 43 percent being “extremely concerned.” Moreover, 72 percent of consumers are not only expecting a recession in the next 12 months, but many are also planning for it.¹

Concerned about inflation

Extremely concerned about inflation

Expecting a recession

Shoppers are responding by shifting more of their spend from wants to needs and changing their purchasing habits. With inflation top of mind, are consumers being pushed to the edge?

Shifting spend from goods to services

Nearly 70 percent of consumers surveyed plan to change the amount of their discretionary spending due to inflation.²Nearly half (49 percent) plan on spending less at restaurants and bars, 41 percent will reduce purchases of luxury goods, and 38 percent expect to lower the amount they spend on travel in the coming months.³

Consumer plans to change discretionary spending due to inflation

Rising prices across retail categories

Nearly all (95 percent) of the consumers surveyed believe prices for products have increased over the last six months. They cite the highest increases have occurred in groceries (79 percent), restaurants (73 percent), and travel/vacations (66 percent).⁴

Percentages of consumers perceiving price increases in last six months by category

Essential categories

Discretionary categories

Fueling change

Rising gas prices may also be driving consumer interest in switching to electric or hybrid vehicles, according to 48 percent of survey respondents. Approximately 35 percent of consumers are considering purchasing an electric or hybrid car within one to two years, while 28 percent plan to do so within a year.⁵

Gas and diesel powered car owner interest in purchasing an electric or hybrid vehicles

Footnotes

KPMG Consumer pulse survey | Summer 2022 edition. (Survey fielded May 10 – May 18, 2022.) Slide 11 (All additional slide references in this report are from this source unless otherwise noted.)
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Take a deeper dive into our findings. Read the full report.

The KPMG Consumer pulse survey series explores key, emerging themes around consumer behaviors, purchasing patterns and the economy. Each survey asks 1,000 U.S. consumers, representing all demographics, timely questions about upcoming purchases and economic conditions. We conduct the surveys to help our clients understand consumers, uncover the signals of permanent change and create basis for transforming their businesses to meet customers where they are.