American consumer spending remains undaunted by inflation, though it is requiring people to grow more resourceful.

That’s according to a report Saturday (Oct. 3) by Bloomberg News, which said these resources include accessing their home equity, using food banks to save money for other purchases, or turning to ChatGPT for help in shrinking their grocery bills.

These are things Tom Barkin, president of the Federal Reserve Bank of Richmond, has seen when reviewing company earnings reports and when speaking to businesses and people around his district, the report added.

“As things get a little tighter, as prices go up and challenge wage growth, people do want to maintain their lifestyle,” Barkin said in an interview with Bloomberg. “I’ve just been taken by the resourcefulness of the consumer.”

As the report noted, consumption increased at its fastest pace in more than a year in August, with new government data showing upticks in categories such as cars, clothing and restaurants.

This is happening as the U.S. deals with its sixth year of inflation, with grocery prices up 32% since the beginning of 2020 and the cost of a pound of ground beef now at a record average of $7.16, the report said.

Against this backdrop, consumers like Kenny Marbry are turning to AI for their grocery shopping. He told Bloomberg that letting ChatGPT compare prices at different stores is saving him an estimated $100 per month, while also instituting some spending discipline.

“I’m much more likely now to look at a price and ask myself, ‘Do I really need to buy this?

Source link