The latest monthly consumer spending report by Revolut, the global financial super-app with more than 1.9 million customers in Ireland, shows that inflation is clearly adding to costs and consumers are cutting back where they can.
A Revolut spokesperson said the latest August data appears to indicate that inflation is having a sharp impact on spending habits, swapping new clothes for old, and petrol for bus tickets.
“Despite supermarket spending staying relatively the same, the number of transactions increased, suggesting people are buying little bits, as and when they need them, rather than a big shop which could result in food wastage.
“Although fuel costs declined, reports suggest these lower costs aren’t being passed onto consumers.
“Our data shows this is encouraging public transport use, as the number of people using buses increased 103%, and the number of transactions increased by 106%, year on year.”
As more groups ask for additional support for families to be able to afford school uniforms amid the cost-of-living crisis, new Revolut data reveals that the number of people shopping at children’s clothing stores was down 4%, year on year.
Similarly, the number of people shopping at men’s and women’s clothing decreased 8%, year on year.
Revolut’s August data suggests many are looking to find a bargain, or rent what they can.
The number of people shopping at second-hand stores was up 60%, whilst 38% more people spent at clothing rental stores, year on year.
Furthermore, the number of people spending at dry cleaners was up 23%, and 15% more at tailors, year on year, as more consumers look to take better care and mend what they already have.
Some are even taking the work into their own hands, as the data shows the number of people shopping at haberdashery stores increased more than 5%, year on year.
Despite inflation, spending on shopping (non-groceries) stayed flat since last year, with antique shops (-44%) and sweet shops (-11%) being some of the worst hit.
The impact of the rising cost-of-living is evident elsewhere in Revolut’s August data.
Despite the number of transactions at supermarkets going up 16%, year on year, the amount spent was up 2%, suggesting people are buying little and often. In spite of inflation, spending at restaurants was down 9%, year on year.
Energy bills are set to increase further over the next year, and Revolut data shows spending on utilities already increased 19%, year on year.
Despite relatively warm temperatures across the country, spending on heating was up 24% as compared to last year.
Additionally, spending on fuel at petrol stations was up 17%, year on year.
However, the data shows this is deterring people, as Revolut data shows a 103% increase in the number of people using buses, and a 116% increase in the number of bus ticket transactions, year on year.
In contrast to the cost cutting, the travel and tourism industry is seeing positive growth.
Revolut data from August shows consumer spending at hotels (116%), airlines (17%), and travel agencies (33%) all increased, year on year.
However, the data suggests we may no longer be taking a book to read, as spending at bookstores was down 8%, year on year.
Moreover, consumer spending at amusement parks (29%), museums (27%), aquariums (20%), cinemas (9%), and theatres (16%) also increased.