Americans draw on savings and food aid to keep spending as prices rise

Consumers are maintaining spending despite inflation by tapping home equity, using food banks and seeking ways to cut grocery costs, Federal Reserve Bank of Richmond President Tom Barkin told Bloomberg. He said higher prices are challenging wage growth, but people want to maintain their lifestyles.

U.S. Consumption rose at its fastest pace in more than a year in August, with increases in spending on cars, clothing and restaurants. Grocery prices have risen 32% since early 2020, and ground beef averages a record $7.16 per pound, the report said.

One shopper told Bloomberg that using ChatGPT to compare grocery prices saves him an estimated $100 a month. Separate PYMNTS research found that consumers under high financial stress were more likely than those under low stress to make their most recent grocery purchase online, 16% compared with 10%.

Read the full story at pymnts.com.