Irish customers are changing their spending habits significantly and cutting back on optional spending as the cost of living crisis continues, according to a new study
Recent data from popular financial app Revolut suggests spending on clothes, sports activities and cinema trips have dropped, while supermarket shopping went up by about 6 per cent in July. These figures represent a share of the 1.7 million Revolut customers in Ireland who complete transactions via the app.
While supermarket spending went up in July, it still falls short of figures reported at the same time the previous year. The fall in annual grocery spending suggests people are looking for cheaper alternatives as food prices increase.
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“The data suggests consumers are looking for cheaper brands in the supermarkets in order to keep money aside for treats at restaurants,” a Revolut spokesperson said.
“Similarly, the decrease in spending on clothes and days out could be to prioritise travel. After a couple of years of restricted travel, consumers are looking for a summer away. However, they’re being careful as to where they’re spending, focusing their money on hotel and flight bookings, and dodging the airport shop,” the spokesperson added.
The data indicates people are prioritising essentials such as groceries and fuel as inflation rises. Fuel shortages are also a concern for budgets as officials have warned shortages may occur this winter.
The government has promised that a cost of living package will be implemented in September to address increasing costs faced by Irish households. Taoiseach Micheál Martin said that there was no exact figure in mind just yet for the initiative but that its intention would be to ease the pressure facing Irish families.
Opposition figures have hit out at the current handling of increasing costs by the government, with Sinn Féin’s finance spokesperson Pearse Doherty suggesting families were “left high and dry” as inflation and energy costs soared this summer.
“We saw earlier this year there was scope for additional interventions outside the normal budgetary cycle. There is still scope there to offset what’s been experienced by those worst affected,” Mr Doherty said.
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