Calviño signals inflation easing and price stability by summer
In the weeks leading up to the holiday season, a nougat trader remarked that nothing around him suggested gloom. He predicted that this year’s nougat would still sell, perhaps at a 10 percent premium, and he wouldn’t be worried if terraces and eateries looked full. The latest CPI readings show life still costs about 6 percent more than a year ago, with some scenarios showing larger gaps in specific cases. Yet terraces and restaurants remain busy. A recent analytics study notes that consumers continue to spend time dining out, and that a more optimistic view on rising prices has softened pessimism compared with a few months prior.
Data also reveal that households more often expected to notice inflation effects only gradually, a four-point shift since September. Meanwhile, household consumption outside the home in the first quarter of 2023 rose nearly 3 percent compared with the same period a year earlier.
The retail sector, especially large chains in general merchandise and grocery formats, has observed a cooling in sales. National statistics on retail trade released earlier this month show overall year‑on‑year gains in January, with only the food segment recording a decline. A Kantar analysis adds nuance to this picture, indicating that at-home consumption is easing while out‑of‑home spending remains resilient, aided by major convenience strategies.
Analysts explain that shoppers are prioritizing time and cost, transferring portions of their consumption from at home to out-of-home settings and opting for simpler menus both indoors and outdoors. A consumer habits expert from Kantar’s Worldpanel division notes that households are adapting recipes toward cheaper ingredients and embracing delivery services. Even when facing a negative trend, the home remains a strong anchor for consumption, supported by prominent convenience formats, according to the expert.
Convenience and pleasure shape today’s choices
Motivations vary with context, but ease and enjoyment have grown as guiding factors. In a climate where health considerations are less dominant, convenience and pleasure have formed a powerful combination and are no longer merely optional drivers. This sentiment mirrors broader consumer behavior shaped by the recent quarantine and ongoing challenges from the pandemic, shaping how people decide what to eat and how to spend their time.
Ultimately, the current economic backdrop has tempered one shared objective of both society and businesses: sustainability. Price, flavor, nutritional value, and product composition have become heavier weights in the decision process. According to a Kantar synthesis, 40 percent of respondents consider sustainability irrelevant to their product choice, while 15 percent report a shifted emphasis away from other attributes due to the present situation. This snapshot underscores how price and practical considerations now compete with longer-term sustainability goals, influencing what ends up on the shopping list. This interpretation comes from market analysts who synthesize consumer signals across sectors.