April 6th, 2023, Hoang Nguyen
International food prices surged to record levels early last year but data from the U.N.’s food agency shows that prices have been cooling for the last 11 months.
Price hikes aren’t unique to food commodities. Costs in several categories including air travel, new/used cars, home buying and travel accommodations have also climbed over the last year.
As we look ahead, consumers around the world still seem wary about the costs of goods and services and most expect these costs to increase over the next 12 months.
A new poll from YouGov reveals that 80% of global consumers from 18 markets think the cost of groceries will grow this year. Just 15% believe that grocery prices will stay the same and 5% believe it will decrease.
Consumers are most likely to say grocery prices will increase over the next year, but they feel similarly when it comes to healthy foods and wellness products. Nearly four in five global consumers think prices in this category will increase in the next 12 months (79%).
Takeout and dining out have also become more expensive recently, with factors such as labor costs, supply chain disruptions and inflation contributing to this trend. In places such as the US and UK, increases in minimum wage have led to higher labor costs for restaurants. More than three-quarters of consumers globally expect the cost of takeout/restaurants to increase in the next 12 months (77%).
Many aspects of travel are more expensive now due to factors such as higher fuel prices, increased demand and increased competition. These price hikes may also be a result of timing, with people eager to get out and explore the world after being put off during the pandemic.
Consumers from all over the world expect the cost of hotel and lodging (74%) as well as airline travel (73%) to increase over the next year. A fifth of global consumers think travel prices will remain the same (20%) and just 7% expect these prices to pare off.
Electronics have also increased in price as a result of supply chain disruptions, higher manufacturing costs and increased demand. The COVID-19 pandemic has caused disruptions in the supply chain, particularly for electronics manufacturers in China. Additionally, the cost of manufacturing electronics has increased due to higher labor costs and the cost of raw materials.
Close to seven in 10 global consumers expect the costs of electronics to increase in the next 12 months (69%)
Buying a new or used car has also become more expensive, especially with disruptions to supply chains and semiconductor shortages. Globally, two-thirds of consumers believe the cost of buying a car will increase this year (68%).
YouGov research reveals that most consumers think costs will also increase for home buying and renting (68%), streaming subscriptions (65%) and gym memberships (58%).
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