Fetch, the nation’s No. 1 consumer-rewards app, released the latest installment of its Fetch Price Index report, which gives a real-time look at consumer behavior and retail channels in this period of runaway inflation.
Consumer prices are up 13.1% year over year — that’s the highest rate in the last 43 years, and it’s held steady at that level for the last three months. The federal government has hiked interest rates to 3.25% in an effort to slow down inflation and last month passed the Inflation Reduction Act, but consumers are still paying more for everyday essentials.
In previous months, higher prices were causing people to cut back on their purchase volume. However, demand for grocery and other everyday consumables can only be withheld to a point. But in September, consumers started showing signs that they’re accepting “the new normal” — demand is up by 4.3%, the first increase after several months in a slump. This demand for consumables rebounded as consumers likely cut back on other discretionary spend.
Shoppers are still seeking value and strategizing ways to stretch their dollar. While some relief in gas prices likely provided some flexibility, consumers are still finding ways to best manage their needs. They are taking more trips with slightly lighter baskets versus previous year to avoid higher checkout price. More households are also flocking to dollar and club stores in search of value. But even budget retailers are seeing prices surge — the inflation rate at dollar stores has increased 12.4% year over year, surpassing all other retail channels.
For this report, Fetch analyzed a panel of 465,659 shoppers, tracking 239 million in-store and e-commerce purchases over the last 24 months. This item-level view of shopper behavior captures, in real time, the true state of inflation and its impact on consumers, brands, and retailers.
Founded in Madison, Wis., Fetch is on a mission to help people have fun and save money on every purchase. The No. 1 rewards app on the market, Fetch has more than 17 million monthly active users who have collectively submitted more than 2 billion receipts and earned more than $475 million in rewards points. A top-ranked app in the App Store and Google Play Store with more than 3 million five-star reviews from happy Fetchers.
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