Key facts
- Consumers are increasingly exhausted by inflation and tariffs, leading to changes in spending habits.
- A significant majority of consumers (78%) report being impacted by inflation over the past three years.
- Price increases are being noticed across electronics, food, apparel, and home essentials.
- Consumers become more price-sensitive and re-evaluate purchases after a 5% price increase.
- Spending patterns have shifted, with consumers eating out less, buying fewer clothes, and opting for cheaper alternatives.
- Lower gas prices offered temporary relief, but are now rising again.
Consumers are increasingly worn down by persistent inflation and tariffs, leading to significant shifts in their spending behavior. A study by Simon-Kucher indicates that while many consumers do not fully understand the impact of tariffs, the overarching takeaway is that prices are rising, forcing households to bear the cost. This has resulted in consumers cutting back on discretionary spending, such as eating out and purchasing new clothes, and opting for cheaper alternatives, including thrifted apparel and private-label brands.
Consumers are becoming more price-sensitive, with 80% expressing concern about ongoing inflation and indicating that they begin to re-evaluate purchases after a price increase of around 5%. This sentiment has been building since the COVID-19 pandemic, creating a state of "perma-crisis" characterized by economic volatility. While lower gas prices offered some relief, they are now beginning to rise again, adding to the pressure on household budgets. Consumers have reported noticing price hikes across various categories, including electronics, food, apparel, and home essentials, with electronics seeing a notable increase in cost for 60% of shoppers in 2025.