Price increases change consumer habits, limit spending to basics, report says

Price increases have changed consumer habits in Greece, a survey by the Retail Consumer Goods Research Institute (IELKA) said on Thursday.

The survey, conducted on a sample of 1,000 consumers in November 2023, showed a clear trend by consumers to save money to buy basic goods and services. More specifically, the pressure is bigger on reducing spending on basic services.

The survey shows that 75% of respondents (71% in January 2023) said they have eliminated entertainment spending, such as restaurants, travel, etc, 52% (50% in January) said they have put off repairs and maintenance on houses and cars, 55% said they have cut purchases on food and groceries, 48% (40% in January) have changed the purchases of brand products and 28% (24% in January) used savings to cover their expenses.

Of these, 28% (29% in January) have defaulted on their debt, while 15% were working overtime or have found a second job.

More consumers are using the government-sponsored so-called “household basket” measure to save money but the majority of consumers think that this measure was the least effective for dealing with price increases.

Eighty-one percent of respondents said cutting VAT on basic foods was the best measure for combatting higher prices.

[AMNA]