Americans restricted their spending activities in the first quarter of 2022 amidst a rise in inflation according to American Consumer Credit Counseling (ACCC).
“This surge in costs across just about every category of consumer goods is a significant burden on American households,” said Allen Amadin, president and CEO of ACCC.
“Discretionary spending is generally the first thing to be curbed during times of financial crisis,“ Amadin said. ”When people are forced to buy fewer groceries or change their commuting habits, we have entered an entirely new level of challenge.”
The U.S. Department of Agriculture is predicting the Consumer Price Index for all food will increase by 5 to 6 percent in 2022, which, if true, will be much higher than the 3.9 percent hike in 2021, 3.4 percent hike in 2020, and 1.9 percent hike in 2019.
In the ACCC survey, almost 60 percent of the respondents said they were either “not confident at all” or “not so confident” in the American economy. With regard to debt, 40 percent of respondents remained confident they could reduce their household debt by at least 10 percent over the next six months.
The survey was conducted in March among 416 respondents between the ages of 25 and 65 with an annual income of $100,000 or less.
“The reason you’re starting to see this wheel of growth across sizes is some consumers can only afford that smaller pack size to get their favorite brands or favorite products,” she said. “They might not be able to afford the larger size.”