Ipsos; a multinational market research and consulting firm, conducted a survey including roughly 20,000 people in varying countries. Of the individuals surveyed, Ipsos found that a bit over fifty percent reported increases in the cost of housing, healthcare, shoes, clothing, and entertainment. In addition to these responses, forty percent of respondents also expect prices to continue rising for the foreseeable future. This study was conducted towards the end of the COVID-19 pandemic, so many economies, such as that of the United States, experienced a period of growth in response to the full re-opening of the economy. However, some countries also were not as fortunate following the pandemic, and still had to endure a recovery period after health systems recovered. For instance, shortages of raw materials and finished goods caused by lockdown regulations played a major role in the global supply chain issues that have still lingered and changed business practices today. Therefore, the effects following the pandemic made it difficult for economies to fully recover, and in some ways, forced individuals into a period of high inflation.
Regarding global inflation, it is vital to look at the price of oil as a catalyst and driver of inflation due to its use in making and delivering goods. Also, the current climate of trade and oil agreements is particularly important for the U.S as other countries are trying to pursue a different currency in which to conduct oil trade. This act would weaken the dollar, and it may push United States citizens further into a recessionary and inflationary period. Also, following the pandemic, the Ipsos study indicated that seventy percent of those surveyed experienced rising prices for fuel, maintenance, public transport, and charges associated with one’s vehicle. This may correlate with what is mentioned above as supply chain issues followed by the changing landscape of oil trade.
In terms of living costs, roughly sixty percent of individuals surveyed experienced an increase in major utilities costs such as gas, electricity, water, and home internet charges. Thus, it is getting increasingly difficult and expensive to live in the U.S, and moreover, around the world. Specifically in the United States, the study mentions the cost of living on lower income families, and how this issue is growing overtime regardless of government intervention. The families with income in the lower twenty percent in the U.S have been shown to spend more of their income on food, transportation, and housing than those earning in the top twenty percent of individuals. This is a major crisis today stemming from the increases in the costs of living in the U.S, and it is an issue to monitor in years to come.
Understanding the Global Price-Sensitive Consumer | PPS Pricing Articles (pricingsociety.com)