Retail

68% Inflation Fears Drive 5.3% Everyday Essential Spending Jump in 2025

Global consumers are tightening budgets on everyday essentials while strategically splurging on experiences and joy-driven purchases, according to Deloitte’s latest ConsumerSignals report.

Published: Apr 10, 2025 4:22 PM

By Jeanel Alvarado

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68% Inflation Fears Drive 5.3% Everyday Essential Spending Jump in 2025

Global consumers are tightening budgets on everyday essentials while strategically splurging on experiences and joy-driven purchases, according to Deloitte’s latest ConsumerSignals report. The study, tracking over 15 countries, reveals a nuanced picture of financial resilience and restraint as households navigate persistent inflation and economic uncertainty.

Financial Well-Being Declines Amid Inflation Concerns Deloitte’s Financial Well-Being Index (FWBI) dipped to 102.4 in February 2025, down from 103.1 in January, marking the lowest level since mid-2024.

This decline reflects growing anxiety over rising costs, with 68% of consumers globally concerned about price hikes for groceries, utilities, and housing. Notably, 74% of low-income households reported cutting back on nonessential spending, compared to 52% of high-income groups.

Spending Intentions Highlight Frugality The Spending Intentions Index, which tracks estimated monthly expenditures, shows: Non-discretionary spending: Up 5.3% year-over-year (groceries, healthcare, transportation). Discretionary spending: Down 2.1% (apparel, electronics, home goods).

Splurge categories: Dining out (+8%), entertainment (+6%), and leisure travel (+9%). “Consumers are adopting a ‘split-brain’ strategy,” says Deloitte lead analyst Clara Mendez…

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68% Inflation Fears Drive 5.3% Everyday Essential Spending Jump in 2025

Global consumers are tightening budgets on everyday essentials while strategically splurging on experiences and joy-driven purchases, according to Deloitte’s latest ConsumerSignals report.

Unlock the rest of this story

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