Against the backdrop of stubborn inflation, Irish consumers spend more last month than in February 2022 with Irish consumers forking out more for travel and food.
New data from fintech Revolut indicates that its Irish customers spent 15 per cent more in February compared with the same month last year when some Covid-related public-health restrictions remained in place.
The value of spending on travel was up 20.3 per cent, with more Revolut customers buying petrol (up 19.5 per cent) and bus tickets (up 36.4 per cent) than last year. The value of spending on cruise lines more than doubled, while airlines jumped by almost a third. Spending on hotels and travel agencies also increased in the month, with discretionary spending on travel in general rising across the board.
Amid the worst cost-of-living squeeze in a generation, shoppers are increasingly attracted to discount stores, which saw 13.9 per cent increase in customers last month compared with February 2022.
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With inflation continuing to push up food prices, the value of spending in supermarkets overall increased 18.9 per cent year on year while spending at clothing shops, cosmetics shops, department stores and furniture shops also increased.
Meanwhile, although spending on entertainment generally rose 9.5 per cent, Revolut customers spent 15 per cent less on digital goods, including media, books, television and films. The volume of spending also declined 22.4 per cent, indicating that many Revolut customers have cancelled their subscriptions altogether, the fintech said.
The figures broadly tally with the Central Statistics Office’s (CSO’s) most recent estimates.
Published last week, the latest harmonised index of consumer prices compiled by the CSO indicated that food prices are estimated to have risen by 1.2 per cent in February and to have increased by 13.4 per cent in the last 12 months. Transport prices, meanwhile, were up 3.6 per cent in annualised terms but were also said to be up on a monthly basis because of higher air fares.
Although the increase in the value of consumer spending is likely due to the impact of inflation, which unexpectedly increased to 8 per cent last month on an annualised basis, a Revolut spokesperson said that shoppers clearly have “a new perspective on their priorities” following the lifting of public-health restrictions.
They said: “The new priorities include travel, where spending on hotels and airlines continue to increase, and activities for days out, such as museums and theatres. These new priorities suggest a continued desire to be around others and get out of the home.”
