Consumer Reactions to Inflation

We saw major consumer behavior shifts across 2020 and 2021, and this year has brought on more changes. While the Covid-19 pandemic fueled much of this upheaval initially, more recently, labor and supply shortages, geopolitical tensions, stock market volatility, and inflation have grown to be dominant forces, with inflation being the leading driver of consumer trends in 2022.

In this report, we analyzed key consumer trends in 2022 to understand how inflation is impacting consumers’ day-to-day lives. It includes insights on:

• Which factors are impacting consumer spending behaviors the most
• How consumers are reacting to price increases
• Which purchase categories consumers are cutting back on the most
• Transaction data showing food & beverage spending trends
• And much more.

Authored by Andrew Custage, Head of Insights, Medallia Market Research