Consumers Fight Persistent Inflation by Trading Down to Cheaper Products

Consumers are combating sticky and stubborn inflation by trading down for cheaper goods and services across various categories, including groceries, according to new data by Adobe Analytics. Trading down—adjusting the type or quantity of purchases for lower pricing and better value—has become more common in recent years. Studies, from CNBC to Bankrate, show that most Americans live paycheck to paycheck, and many households have exhausted their pandemic-era savings. As a result, shoppers are now trying to stretch their dollars. One way to achieve this has been to shift their spending patterns to cheaper goods. Adobe reviewed comprehensive online shopping data from January 1 to April 3. The analysis highlighted that low-priced items accounted for a substantial share of online unit sales compared to five years ago....