Abstract:

In 2022, consumers around the world experienced a whiplash effect. Bolstered by savings accrued during the COVID-19 pandemic and driven by a desire to get out and treat themselves after lockdowns, consumers were abruptly confronted by steep price increases, which have only recently begun to decelerate, yet still outpace real wage growth. This much is more than known as billions have experienced it first-hand. However, what is less understood are the specific ways different income groups have been and continue to be affected by the rising costs of living and the various coping and adaptive practices employed by different income groups. From the current perspective in 2024, as inflation decelerates and economies stabilise, what lessons can we learn from looking more closely at the cost-of-living crisis, which has waned since late 2022? The first is to understand the impact this period has had on consumers, not just in terms of the financial situation they find themselves in now, but to identify the coping and adaptive patterns that emerged to grasp consumer trends in the future. Among the many things we learned from the pandemic, one is that people do not simply reset. Instead, consumption patterns linger and shape individuals' engagement in emerging contexts. The second is that to grasp the complexities of such an event as the cost-of-living crisis; we need robust, layered approaches that can sketch the conditions of the consumer landscape and flesh out the personal, social and emotional details to create a holistic image.