A third of Scots have admitted they are now spending less money on food and other essentials as inflation batters the economy.
Rising costs and soaring fuel bills are being felt across the country and causing a sharp drop in consumer confidence.
The findings were published today in a quarterly report on the Scottish economy by the respected Fraser of Allander Institute.
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It said the economic outlook had "significantly worsened" since April when the price cap on energy bills was raised.
The report added: "Consumers are starting to modify their spending behaviour, with over half of consumers reporting that they are spending less on non-essentials.
"In addition, a third of consumers say they are spending less on food and other essentials.
"It is not just food and fuel, however. The analysis shows that the costs of property, both rental and ownership, are also increasing significantly."
Advice Direct Scotland - which offers free and independent advice to those who need it - warned that rising costs could push more Scots into debt.
Alan Mathieson, a spokesman for the charity, said: "This latest analysis demonstrates the scale of the cost-of-living crisis we are in, with Scots having to make difficult decisions about spending on even essential items.
"We know there is a risk that rising energy bills and inflation could push people into debt, or make existing debt problems worse.
"The important thing to remember is that help is available, and that no one should have to struggle alone.
"Many Scottish citizens are not claiming the full benefits that they are entitled to. Our online calculator, which can be found at advice.scot, is tailored for Scotland and allows people check their entitlement to both reserved and devolved benefits."
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