Consumer Morsel


Three reasons to be cheerful

 

2 minute read

 

With consumer price inflation reaching new heights in March 2022 (8.5% YoY), there continues to be much discussion on the impact of inflation on consumers – particularly those on low and modest incomes.

 

Recent media stories sometimes cite surveys of sentiment that show that consumers are inclined to cut back in response to higher prices. But people don’t always actually do what they say they are doing. Leveraging the breadth and depth of Bank of America’s comprehensive payments and spending data from 67 million consumer and small business clients, we are able to get a richer and deeper assessment of the consumer than small-scale surveys can ever achieve. Our data does not support all the gloom.

 

In this note we highlight a few reasons to be cheerful.