Wednesday October 05, 2022

Price hike changes eating habits of 59% Finns : Survey

Published : 10 Aug 2022, 02:11

Updated : 10 Aug 2022, 02:14

  DF Report

DF File Photo.

A survey commissioned by OP has revealed that rising inflation in the first half of the year had a major impact on Finns’ finances and spending.

Most respondents are concerned about price rises and 42 per cent believe that their financial situation will worsen this year, said OP in a press release on Tuesday, quoting the survey.

A total of 59 per cent of respondents state that price rises, that is to say inflation, will have an impact on their personal consumption this year.

Price rises have affected 65–79 year-olds least and 15–24 year-olds most: 65 per cent in the younger age group say that price rises have affected their spending.

The survey reveals that, this year, Finns have adjusted their food and grocery purchases, visits to restaurants and cafés, travel, and fuel purchases in particular.

The rise in fuel prices has impacted on many people’s travel habits: 59 per cent of respondents say that they have reduced their unnecessary driving. In addition, one in five say that they have started cycling and walking more.

“In particular, under-34s have trimmed their food and grocery purchases this year. Because many young people have yet to build up their savings and may lack earned income, they are looking for cheaper alternatives when shopping. The survey indicates that women clearly reduced their spending and saved – to a greater extent than men – on food, groceries and restaurant visits, for example,” said Masa Peura, Senior Vice-President, Everyday Banking.

Almost half of respondents to the survey have postponed larger purchases due to price rises, while 51 per cent switched to lower-cost products early in the year.

Many people are concerned about price rises, even if their own finances are not yet affected. Almost all respondents (92 per cent) are worried about rising prices.

The rise in interest rates is also causing concern, with 59 per cent worried about rising costs due to price and interest rate hikes.

The survey suggests that few people believe that their finances will improve this year. A total of 42 per cent of respondents believe that their finances will deteriorate and 48 per cent that they will stay level. Almost a quarter say that price rises have left them with too little money to live on.

“The survey shows that workers aged 35–49, in particular, expect a deterioration in their finances this year. This is partly explained by the fact that wage rises in 2022 have been moderate. I would advise everyone to use, say, mobile banking to monitor their daily expenditure and list their biggest items of expenditure. Some surprising items might appear on the list,” Peura said.

The survey was answered by a representative online panel of 16–79 year-old Finns (n=1,096) in June–July. It was conducted for OP by Taloustutkimus. The margin of error is plus or minus 3.2 percentage points.