Medallia's report on consumer reactions to inflation reveals that price increases have become the top factor affecting household spending. Most consumers are cutting costs by choosing cheaper products, reducing dining out, and limiting travel. While some turn to savings or debt, few have received raises that match inflation. Surprisingly, restaurant spending remains steady, with consumers favoring quick service over sit-down options. Brands face a choice: compete on price or emphasize quality. As inflation persists, consumers expect lasting financial strain, with 68% believing prices won’t normalize for at least a year.

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