First Insight’s report, covering April to July 2022, shows inflation is heavily eroding consumer confidence, with 80% feeling less confident to spend and 93% cutting overall expenses. Top recession fears include rising food prices, shortages, and housing costs. Consumers are saving less, switching to private labels, and prioritizing essentials like groceries, gas, and dining out, which have seen the sharpest price impacts. Discretionary spending and travel are being scaled back, while apparel and vehicle expenses are deprioritized. Despite some recovery in categories like professional attire, inflation continues to drive long-term behavioral shifts.

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