Inflation and Daily Life: What People Are Cutting Back On

52

What People Are Doing:

• Switching to store brands: Many consumers are turning away from premium and name-brand products in favor of generic or private-label alternatives.

• Buying in bulk: Households with storage space are purchasing non-perishable items in larger quantities to secure lower per-unit costs.

• Cutting luxury food items: Items like organic produce, imported cheeses, and high-end cuts of meat are being replaced with cheaper alternatives.

• Planning meals more strictly: More people are meal-prepping, using shopping lists, and avoiding impulse buys to stick to strict budgets.

The phrase “fridge full of nothing to eat” is taking on a new meaning — people are filling their homes with essentials, but avoiding anything that could be considered a splurge.

2. Dining Out and Food Delivery: A Treat, Not a Habit

Inflation has also impacted the hospitality industry — not just because restaurants face higher ingredient costs, but because their customers are dining out less.

Key Consumer Shifts:

• Reduced frequency: Dining out, once a weekly ritual for many, is now reserved for special occasions.

• Shift to cheaper venues: People are choosing fast-casual or takeaway over full-service restaurants.

• Cutting back on delivery apps: With delivery fees and tip expectations rising, many have returned to cooking at home.

While some businesses have adapted by offering smaller portions or simplified menus, others are struggling as discretionary spending contracts.

3. Energy and Utilities: Turning Down the Heat

With soaring global energy prices — largely influenced by geopolitical instability and shifting supply chains — electricity, heating, and fuel bills have become major concerns for households.

How People Are Coping:

• Lower thermostat settings in winter or reduced air conditioning in summer.

• Shorter showers and less frequent laundry cycles to save on water heating.

• Switching to energy-efficient bulbs and appliances where possible.

• Using public transport more frequently or combining trips to reduce fuel consumption.

Governments in some countries have introduced subsidies or price caps to ease the burden, but these are often temporary solutions.