Irish consumers are spending more on groceries, restaurants and fuel while cutting back on leisure activities and clothing purchases as pressure on the cost of living intensifies, according to fintech Revolut.
The group’s latest consumer spending report suggests consumers here – month on month – are spending more on essentials, generally reflecting rising prices.
July figures show spending on airlines, cruise lines, tourist attractions and hotels and resorts rose 13.7%, 52%, 19% and 80.5% respectively from the previous month .
However, the data also suggests that some travelers are avoiding stores when traveling, with airport spending down 11% and duty-free sales down nearly 19%. Similarly, car rental spending lagged inflation and was down 1% from the June figure.
Revolut said the data suggests consumers are looking for cheaper brands in supermarkets to save money for treats in restaurants, Revolut said.
“Similarly, the reduction in spending on clothing and outings could be to favor travel. After a few years of restricted travel, consumers are looking for a summer away,” he said. “However, they are careful where they spend, focusing their money on hotel and flight bookings and avoiding airport shops.”
On an annual basis, grocery spending actually fell 4% per consumer in July 2022, compared to July 2021, suggesting that many are looking for cheaper items. Fuel expenditure increased by 26% per consumer in July 2022, compared to the same month of the previous year. Revolut said many have shifted to public transport, with spending on buses up 6.5% per consumer in July compared to June, while spending on trains rose 6.6%.
While the price of a cheeseburger at McDonald’s rose to €1.70 last month, new data from Revolut shows spending at fast food restaurants rose 5.7% per consumer in July compared to the previous month. last month. Overall restaurant spending rose 11.3% per consumer last month compared to June.