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Rising prices are a reality for many Americans, and it’s hitting them hard.
Shoppers are becoming increasingly fatigued by inflation and tariffs, and are changing where and how they spend their money, according to new research.
In Simon-Kucher’s survey, only about one-third of respondents said they understood the impact of tariffs. But “the main benefit for consumers remains simple: prices are rising and households are paying the price,” the study said.
Another study from the Kearney Institute found that shoppers aren’t just shopping less. They are reallocating spend across categories, price points, and channels.
For example, 54% have reduced eating out and 44% have reduced their clothing purchases, with 21% purchasing recycled or resale apparel and 37% substituting cheaper brands.
Shoppers are exhausted by soaring prices
Since the start of the 2020 coronavirus pandemic, U.S. consumers have experienced what Shikha Jain, partner and head of North American consumer at Simon Kuchar, calls a “permanent crisis,” or a state of permanent crisis and constant economic fluctuation. First there’s supply chain uncertainty, then tariffs, and now more geopolitical events that can impact costs, including oil and gas prices, Jain told USA TODAY.
“After years of continued pressure, consumers are not only adapting to high prices, they are becoming exhausted by them,” the commercial strategy consulting firm’s report said. “Even a modest increase can seem heavier than it really is because of the added financial burden that has accrued over the years.”
In the 2025 U.S. Consumer Tariff Market Survey, conducted monthly from February through 2025, 78% of consumers said they had been affected either somewhat or overwhelmingly by inflation over the past three years.
The report, which surveyed 2,000 people, also consistently said women felt price pressure more acutely than men.
The report said consumers will notice further price increases in the second half of 2025, with 60% of shoppers saying electronics cost more. The report said shoppers also noticed increases in prices for food, clothing and household goods throughout the year.
Shoppers are becoming increasingly price-sensitive
Jain said 80% of consumers surveyed by Simon Kuchar were concerned about continued inflation and said they were “starting to feel that prices are too high.”
“People are most accepting of a 5% price increase,” Jain said. “They then begin to evaluate their purchase decision by either reducing the price to a cheaper alternative, waiting for a promotion, or not purchasing at all.”
Jain said retailers tend to hold prices steady for essential items, such as pantry staples, while raising prices on items and categories that are less price-sensitive to shoppers.
Some people may want a particular type of peanut butter or chocolate, and may buy those “favorites” regardless of the price increase, Jain said.
At the same time, some brands and products will become more willing to compromise on brand, price, and quality as consumers reduce prices to private labels and lower-priced versions.
Coronavirus, inflation and tariffs reshaping behavior
Jain said consumer behavior often changes during times of macroeconomic crisis.
The coronavirus pandemic and shutdowns pushed consumers to order and deliver online, first out of necessity and second out of convenience, she said.
Meanwhile, tariffs are increasing prices for products, especially from heavily tariffed countries in East Asia, Jain said. As a result, consumers are starting to embrace the idea of upcycling, recycling and saving more, Jain said.
Only time will tell whether the new shopping behavior sticks, she says.
Consumers may seem “confused” but are dissatisfied
For more than a year, consumers have been told that they are “selective, cautious, and discerning,” and that they splurge selectively, writes Katie Thomas, director of the Carney Consumer Research Institute, in a recent study titled “Consumers in Disarray: Managing a Fragmented Consumer Base.”
Research shows that the fragmented behavior of “shopping as a form of comfort, consistency, and control” while struggling financially can be disruptive.
The study surveyed 24,000 consumers worldwide and 2,000 in the United States for the latest quarterly report.
“While consumers have a variety of views on tariffs and their specific impact, nearly all consumers are dissatisfied with prices that appear to continue to rise. 57% of consumers cited inflation and affordability as their top economic concern,” Thomas told USA TODAY.
Another recent study from the Kearney Institute investigated how consumers in both legs of the K-economy, typically used to represent both economically well-off and needy households, behave erratically.
Low-income consumers are splurging selectively while cutting back on necessities, while high-income consumers are slashing food prices while splurging on experiences.
Betty Lin-Fisher is a consumer reporter for USA TODAY. Contact her at blinfisher@USATODAY.com or follow her at @blinfisher on X, Facebook and Instagram and @blinfisher.bsky.social on Bluesky.. Sign up for our free The Daily Money newsletter, breaking down complex consumer and financial news. Subscribe here.
