According to a new study by Permanent TSB, more than six in 10 people believe they will need to cut back on their grocery spending in the coming year as the cost of living increases.
Reflecting Ireland’s study shows falling consumer confidence amid rising inflation, with the cost of living crisis now a top concern for 81 per cent of respondents. This is an increase from 62 percent of respondents just three months ago.
Another 85 percent believe the cost of living will get much worse.
The rise in energy prices is also a major factor worrying consumers, with more than half of people fearing they won’t be able to pay higher energy bills.
In response to rising prices, consumers are now more likely to switch providers to find the best deal, with more than half of respondents saying they plan to switch electricity or gas providers this year.
The report also says that 47 percent plan to look for a new car insurer, while 46 percent intend to switch TV or broadband providers.
The study also showed that one in four people are considering changing their mortgage in the next year.
Overall, consumer pessimism is at its highest level since 2013, and half of those surveyed feel worse off than a year ago. Just 12 percent believe they are likely to get a raise to support them during the cost of living crisis.
The rising cost of living has eclipsed the pandemic as a top concern, with just 15 per cent of respondents citing Covid-19 as a top concern.
“The feel-good factor that emerged as Covid-19 began to recede has clearly been halted by the recent rise in the cost of living and economic uncertainty stemming from the devastating events in Ukraine,” said Leontia Fannin, permanent director of corporate affairs at TSB.
She added that the crisis is likely to have an impact on both businesses and consumers in the coming months: “The issue of the cost of living is likely to dominate Irish consumers’ minds through to the end of this year and beyond and it is likely to have a significant impact are having an impact on businesses across the board.”
https://www.independent.ie/business/most-people-plan-to-cut-back-on-food-spending-as-cost-of-living-squeeze-worsens-41694631.html Most people plan to cut back on their grocery spending when the cost of living falls