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Consumer Spending Under Inflation Pressure

Eighty percent of companies are increasing wages this year1, but consumers are still struggling economically. Why? The costs of some goods and services remain stubbornly high.

63% of consumers said they were living paycheck to paycheck in November 2022.2

In December 2022, consumers spent $371 per month more on goods and services than the previous year.3

Prices for essentials have increased since last year.4

  • 13.9% Transportation
  • 9.2% Energy Services
  • 8.5% Food
  • 8.2% Shelter
  • 6.1% New Vehicles

How are U.S. consumers addressing price increases?5

  • 24% Cutting back spending
  • 17% Reducing travel/vacation plans
  • 17% Driving less
  • 12% Buying cheaper goods
  • 10% Eating out less
  • 10% Buying fewer groceries

But there's a surprise! Despite rising commodity prices, 43% of consumers are budgeting for travel in 2023.6

Are you aware of recent buying trends that could impact your business? For a complimentary review to identify efficiencies you might be missing, simply complete a short form and a Synovus Merchant Services Consultant will contact you with details. You can also talk to your Synovus Representative or visit a local branch to learn more.

Important disclosure information

This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.

  1. Fortune, “80% of Companies Plan to Give Raises in 2023, According to a New Survey of Nearly 5,000 Participants,” February 23, 2023 Back
  2. PYMNTS.com, “New Reality Check: The Paycheck-to-Paycheck Report,” December 2022 Back
  3. Moody’s Analytics, “Employment and Inflation Go the Fed’s Way,” January 12, 2023 Back
  4. U.S. Bureau of Labor Statistics, “Consumer Price Index Summary,” April 12, 2023 Back
  5. Gallup, “Inflation Now Causing Hardship for Majority in U.S.,” September 7, 2022 Back
  6. CNBC, “Inflation Isn’t Dampening People’s Desire to Travel – But Travel Companies May be Missing a Trick,” March 11, 2023 Back