Consumers can achieve specific reductions in spending.
Inflation is leaving a bad taste in the mouth of many shoppers, with some industries bearing the brunt of the spending restraint. A recent survey sheds light on the areas that have been hit the hardest.
Despite a decline in inflation, a significant number of Germans are still hesitant to open their wallets. Clothing and accessories (52%), electronics (44%), and hobby and leisure items such as bikes and camping tents (43%) are among the items most commonly being scrimped on, according to a survey conducted by price comparison portal Idealo and released on Sunday. There is less savings when it comes to cosmetics and drugs (27%) and food (30%). Health products (15%) feel the impact the least.
"Certain sectors are taking a disproportionate hit," remarked Florian Kriegel, an expert on pricing at Idealo. "People are more likely to cut back on buying new clothes or big-ticket items like electronics than on their health." The shift in spending habits also extends to cultural and leisure activities. Restaurants and bars are getting hit the hardest, with 53% of survey respondents indicating this is where they're curtailing their spending. Saving is also occurring in the areas of concerts, festivals, and nightclubs (47%). Museums and exhibitions (36%) are mentioned less frequently.
"Education and physical fitness enjoy a high status, but going out to restaurants or bars seems to be something many people are willing to do without," Kriegel continued. "This also reflects the increase in value-added tax on food in the hospitality sector, which has made prices jump. Going out to restaurants and bars is starting to feel like a luxury that many can't or won't afford."
There appears to be no immediate turnaround in consumer sentiment based on the survey results. Some 43% are spending less than the previous year, while only 7% are spending more. The rest - 50% - remain unchanged. The majority, 82%, are setting money aside for something. The top three saving plans are for vacations or trips (42%), pensions (31%), and their children's future (19%). Some 15% are saving for a property.
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Retail trade sectors like clothing and electronics have seen significant reductions in consumer spending due to inflation, according to a recent survey. Conversely, health products and food continue to see less savings, indicating that consumers are prioritizing these necessities.
The retail trade industry, particularly sectors such as restaurants and bars, is experiencing a shift in consumer spending habits as a result of inflation, with many people cutting back on these luxuries.
