Consumers are prioritizing getaways as prices for essentials soar

Irish consumers are struggling with the rising cost of essentials like groceries and fuel but remain eager to head out this summer.

Supermarket spending increased 6.6 percent last month compared to June, according to the latest spending report from Revolut. However, when shoppers noticed the higher costs at the checkout, habits changed.

Revolut, which has more than 1.9 million Irish customers, reported that grocery spending fell 4 per cent in July this year compared to July 2021, suggesting many customers are buying less or choosing cheaper items now.

Even so, diners rose in July compared to June as restaurant spending rose 11.3 percent.

Revolut pointed out that attitudes change when budgets get tight, as more consumers are willing to cut down on essentials to set aside money for dining out or vacations.

Consumers also spent 3.9 percent more on fuel in July compared to the previous month, with fuel spend increasing by more than a quarter compared to July 2021.

Some Revolut customers turned to public transport instead, with spending on buses up 6.5 percent over the past month.

Demand for rail transportation also increased during July, with rail ticket spending rising 6.6 percent.

In July, too, consumers spent more on holidays.

Despite ongoing reports of airport disruptions, airline spending increased 13.7 percent compared to this time last year.

Cruise ship spending rose 52.5 percent over the same period.

Booking accommodation at hotels and resorts proved to be in high demand, with spending up 80.5 percent compared to July 2021. However, vacationers are expected to try to make some savings when they get away. Spending at the airport fell 11 percent, while duty-free shopping fell 18.8 percent.

“After a few years of restricted travel, consumers are looking for a summer away. However, they are careful about what they spend money on, concentrating their money on hotel and flight bookings and avoiding airport shops,” a Revolut spokesman said.

The report also attributed last month’s decline in spending on clothing and days on holiday to Irish consumers’ focus on travel this year.

Clothing shopping fell 5.3 percent in July compared to June, while spending on leisure activities such as cinema, sports clubs and art galleries also fell last month.

https://www.independent.ie/business/irish/consumers-prioritise-getaways-as-essentials-rise-in-price-41895732.html Consumers are prioritizing getaways as prices for essentials soar

Fry Electronics Team

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