87% are "fed up" with rising prices, and 27%
are unwilling to pay more than current prices, or will cut daily
essentials from their shopping lists
GREENWOOD
VILLAGE, Colo., Aug. 19,
2024 /PRNewswire/ -- Pricing pressures have caused
Americans to pull back, with over 6 in 10 (62%) saying their
'purchasing power' and income in relation to prices is decreasing –
and their money doesn't go as far as it used to (82%). A majority
(79%) note household goods like cereal and chips dwindling in
serving sizes, according to new research from Empower, a
leader in financial planning, investing, and advice.
Some 78% are using more of their budget on essential items, and
27% have hit a pricing limit, and aren't willing to pay anything
more for many grocery staples, or will cut the items from their
shopping lists. Prices are 20% more expensive than February 2020 according to CPI data1 –
so consumers would need to pay $1,218
now for their dollars to have the same purchasing power as
$1,000 in 2020.2 Consumers
say they'll quit buying goods including:
- Coffee: Over a third of people aren't willing to pay
even $1 more for a cup of joe.
- Bread: 1 in 5 Gen X will stop buying loaves of bread if
the price increases by more than a buck.
- Fresh produce: 1 in 5 Gen Z will chop fresh fruits and
vegetables from their shopping lists if the price increases by
$1.
- Snacks: 20% of Millennials are not willing to pay
one dollar more for snack foods like
bags of chips or chocolate bars.
Quality and quantity
Almost half (45%) of people
notice a change in quality of items they've been buying for years –
79% say there are less chips in the bag, and 54% say that chocolate
costs more, but doesn't taste as good. Price increases can
influence loyalty, too: around 75% of Americans say it turns them
off from a brand, and many are switching over to
generic/store-owned brands (77%). Three in four believe the higher
prices go, the less they're getting in return.
Sizes aren't the only thing getting smaller: Americans believe
Time is Money, and 29% say their amount of free time is shrinking,
feeling priced out of enjoying it (58%) as costs have risen. Nearly
half of Americans feel priced out of retiring at the age they want
(49%), along with financial goals like home ownership (48%),
leaving an inheritance (50%) and paying for a college degree (41%).
The sentiment extends to starting a business (38%) or buying a
piece of one, through investing in the stock market (40%).
Still, optimism remains: 28% of Americans think prices will keep
dropping before the end of this year. A third feel they have the
opportunity to grow financially by paying down debt (33%) and
investing (17%).
More findings:
- Inflation generation: 87% say they're "fed up" with
rising prices. Baby Boomers are the least willing to pay more than
products' current prices.
- The long and short on goals: 47% of Americans say they
have less disposable income. But inflation is taking a slice out of
larger money goals, too: 35% have less in emergency savings, 24%
say their net worth is shrinking and 17% worry they'll have to work
longer to retire.
- Tipflation and fees: 45% say they are being asked to tip
more in places where they didn't tip 10 years ago. Nearly
three-quarters (73%) say extra fees are being added where they
haven't had to pay in the past.
- Stocking up: In the last year to save money, 53%
switched to a generic brand, 34% downloaded a store's app for
rewards/coupons and 21% purchased a store membership to get
benefits like free shipping.
- Getting smaller: 68% say new houses are getting smaller,
but not cheaper. More than half (57%) say streaming services have
increased prices, but there is less content.
- Dreaming it: Close to a third (30%) would sacrifice
their vacation time in order to achieve their financial goals; 1 in
5 would give up their dream home (22%).
- Up and down: 37% like the concept of dynamic pricing,
even at a grocery store. Two in 5 plan to split more prices with
family and friends to make ends meet.
Visit The Currency™ to read Empower's full research
report, "The Big Shrink."
*ABOUT THE STUDY
The Empower "The Big Shrink" study is
based on online survey responses from 2,203 Americans ages 18+
fielded by Morning Consult between March 22nd–24th, 2024. The
survey is weighted to be nationally representative of U.S. adults
(aged 18+).
ABOUT EMPOWER
Empower, a leader in financial planning, investing, and advice, is
dedicated to creating financial freedom through people and
technology. It administers approximately $1.6 trillion in assets for more than 18.6
million individuals3 and is recognized as the
nation's second-largest retirement services provider in the
U.S.4 by total participants. Connect with us on
Empower.com, and subscribe to The Currency™ for the
latest money news and views shaping how we live, work and play.
Media contacts:
Rebecca
Rickert Rebecca.Rickert@empower.com
Katelyn Kwiatkowski
Katelyn.Kwiatkowski@empower.com
- U.S. Bureau of Labor Statistics. The Consumer Price Index,
June 2024 compared to February 2020.
- U.S. Bureau of Labor Statistics. CPI Inflation Calculator.
June 2024 price change of
$1,000, as compared to June 2020.
- As of June 30, 2024. Information
refers to all retirement business of Empower Annuity Insurance
Company of America (EAICA) and its subsidiaries, including Empower
Retirement, LLC; Empower Life & Annuity Insurance Company of
New York (ELAINY); and Empower
Annuity Insurance Company (EAIC), marketed under the Empower brand.
Assets under Administration (AUA) refers to the assets administered
by Empower. AUA does not reflect the financial stability or
strength of a company.
- Pensions & Investments DC Recordkeeper Survey (2024).
Ranking measured by total number of participants as of December 31, 2023.
Empower refers to the products and services offered by Empower
Annuity Insurance Company of America and its subsidiaries. This
material is for informational purposes only and is not intended to
provide investment, legal, or tax recommendations or advice.
The information contained herein is being provided for
discussion purposes only and does not constitute an offer to sell,
or a solicitation of an offer to buy or sell securities. All
visuals are illustrative only.
"EMPOWER" and all associated logos and product names are
trademarks of Empower Annuity Insurance Company of America.
© 2024 Empower Annuity Insurance Company of America. All
rights reserved.
RO3764497-0824
View original content to download
multimedia:https://www.prnewswire.com/news-releases/the-big-shrink-americans-are-pulling-back-as-prices-rise--over-1-in-4-hit-their-limit-on-the-prices-of-household-staples-302224012.html
SOURCE Empower