| 11.5°C Dublin

Most people plan to cut back on food spending as cost of living squeeze worsens

Close

62% of people plan to cut food spending over the coming year. Photo: Marcos Calvo Mesa

62% of people plan to cut food spending over the coming year. Photo: Marcos Calvo Mesa

62% of people plan to cut food spending over the coming year. Photo: Marcos Calvo Mesa

More than six in 10 people believe they will have to cut back spending on food in the year ahead as the cost of living rises, according to new research from Permanent TSB.

The Reflecting Ireland research illustrates plummeting consumer confidence amid rising inflation, with the cost-of-living crisis now a key concern for 81pc of those surveyed. This marks an increase from 62pc of respondents just three months ago.

A further 85pc believe the cost of living is going to get much worse.

The increase in energy prices is also a major factor worrying consumers, with over half of people stating they fear they will be unable to pay higher energy bills.

In response to the rising prices, consumers are now more likely to switch providers to find the best deal, with over half of respondents saying they plan to switch power or gas provider this year.

The report also stated that 47pc plan to look for a new car insurer, while 46pc intend to switch TV or broadband provider.

The research also illustrated that one in four are also considering switching their mortgage over the next year.

Consumer pessimism overall is at its highest level since 2013, with half of those surveyed feeling less well off than they were a year ago. Only 12pc feel that it is likely they will receive an increase in pay to support them throughout the cost of living crisis.

The rising cost of living has eclipsed the pandemic as a major concern, with only 15pc of those surveyed listing Covid-19 as a key concern.

“The feel good factor that emerged as Covid-19 began to recede has clearly been halted by the recent surge in the cost of living and economic uncertainty arising from the devastating events in Ukraine,” said Permanent TSB head of corporate affairs Leontia Fannin.

Business Newsletter

Read the leading stories from the world of business.

This field is required

She added that the crisis is likely to impact both businesses and consumers in the coming months: “The cost-of-living issue is likely to dominate the thoughts of Irish consumers through the rest of this year and beyond and it is likely to have significant implications for businesses across the board.”


Related topics


Most Watched





Privacy