Spending in the time of inflation? Less quality and hunting for “evening” promotions
Less fish, meat, seasonal fruit and vegetables but also fewer quality products. The shopping cart is changing composition. The wave of price increases, mainly triggered by expensive energy, has put families in front of record increases and many are running for cover with new purchasing choices. For the experts it is not over yet and there will be more increases in the coming months.
The data released by Istat relating to consumer prices in June showed another jump in the inflation rate: the general index recorded an increase of + 8.0% while the shopping cart rose even more, marking a + 8.3%. It is a trend that has not been seen for almost 40 years.
In detail, the greatest increases in June (on an annual basis) were marked by seed oil (+ 68.6%), butter (+ 27.7%), flour (+ 20.5%), pasta (+18, 3%), chicken (+ 15.1%), rice (+ 13.7%), eggs (+ 13.6%) but also fries (+ 13.5%) and ice cream (+ 13.4%) . The list of increases is long and does not spare preserved milk (+ 12.1%), bread (+ 11.3%), fresh fruit (+ 10.9%) and fresh fish (+ 10.3%). Up to fruit juices (+ 9.4%), sugar (+ 9.2%), semi-skimmed fresh milk (+ 8.3%), mineral waters (+ 8.3%), olive oil (+8 , 3%) and even potatoes (+ 7.4%), cheeses (+ 7%) and beer (+ 4.8%).
It is clear that the many increases, even double-digit ones, are pushing many families to look for a way to spend less. So those products that now cost more come out of the cart. «This is the case of fish, meat, especially beef and white, together with seasonal fruit and vegetables – explains Carlo Alberto Buttarelli, Director of the Studies and Relations Office with the Federdistribuzione Supply Chain -. In this phase we also record a reduction in consumption but at the same time we see an increase in the retailer’s brand which is undoubtedly a positive element because in this way families are able to make convenient purchases and at the same time save quality ».
Quality choices are at risk. From the survey that Federdistribuzione conducted with Ipsos on consumer sentiment, it emerges that “over a third of Italians (32%) are not willing to pay more for the purchase of quality products in the face of an increase of more than 5% of their price.
The latest Istat data tell us that purchases by Italians have moved towards discount stores, a type of business that in the first four months of 2022 recorded the strongest increase in sales, equal to + 8.6%. “This is because consumers, due to expensive bills and inflation, pay more attention to the price, which becomes the main element in purchasing decisions” underline Codacons.
How to spend less? The strategies are many and now well-established by families. «The suggestion is to buy taking advantage of discounts and promotions – says the Codacons -. Among the advice is also to go to the supermarket or the market in the evening orals, when fruit, vegetables, baked goods and perishable goods are sold off so as not to be thrown away ».
The forecasts are not positive. «Today’s inflation level is unfortunately not a point of arrival – explains Carlo Alberto Buttarelli -. We already have purchasing inflation in our stomachs which in the next few months will pour into sales prices because we are unable to bear this weight alone “. For the expert, we have a difficult second semester ahead of us and the long wave could reach the first months of 2023. “Already in the next two months, the inflation level of the shopping cart could exceed the 10% threshold” estimates the expert who concludes: “we hope that interventions will arrive from the institutions and that they are mainly in defense of the spending capacity of families”.