Posted 1/15/2024, 5:08:32 PM
Consumers Brace for Hardship as Inflation Erodes Spending Power
- About two-thirds of consumers have plans to cut back on spending due to expectations for higher interest rates and inflation
- Financially vulnerable households are facing more financial stress and often live paycheck to paycheck
- 80% of mortgage holders are confident they can handle higher monthly payments when loans renew
- Businesses report weaker demand and more competition, slowing the pace of price increases
- Companies expect above-average wage growth until 2025, keeping inflation expectations higher