Inflation Priorities: What Consumers Still Won’t Give Up
Inflation May Be Cooling, but Consumer Pressures Remain
Inflation may no longer dominate headlines the way it once did, but it remains a significant concern for consumers. In 2026, 86% of U.S. adults agree that most things are too expensive, while 69% say they often feel like they are living paycheck to paycheck. At the same time, 151 million U.S. adults say they have not yet gotten used to inflation and it’s still negatively impacting them (57%). These figures suggest that while Americans have adapted some of their spending behaviors, inflation continues to shape everyday financial decisions.
For marketers, this presents an important opportunity to understand not only where consumers are cutting back, but also the categories and activities they continue to prioritize despite ongoing economic pressure. Understanding these tradeoffs can help brands identify more resilient audiences and build campaigns that better align with real-world consumer priorities.
Consumers are still spending, but they're becoming more selective about where every dollar goes.
Consumers Are Making Tradeoffs, Not Eliminating Spending
One of the clearest effects of inflation is that consumers are reducing discretionary spending, particularly in leisure and entertainment categories. Rather than eliminating spending altogether, many Americans are becoming more selective about where they spend their money and where they are willing to cut back.
- In July 2026, nearly half of U.S. adults (47%) are cutting back on eating out at restaurants. While restaurant cutbacks have declined since reaching 53% in 2023, dining out continues to be one of the first discretionary expenses Americans are willing to reduce.
- 114 million U.S. adults are buying products on sale (43%). While that figure has declined from a peak of 53% in 2023, it shows that finding value continues to be an important shopping strategy for many Americans. At the same time, 35% are switching from name brands to generic products, a behavior that has remained consistent since 2024, suggesting that trading down has become a lasting cost-saving habit.
- 39% are cutting back on buying clothing and apparel. Although apparel cutbacks have eased since 2023 (47%), consumers continue to look for ways to stretch their budgets.
- 36% are cutting back on travel, increasing from 33% in 2025, showing that vacations and getaways remain vulnerable to economic pressure.
- As consumers become more selective about where they spend their money, cutting back on using food delivery services is becoming more common. In 2026, 30% of U.S. adults are cutting back on these services, up from 27% in 2025.
- Entertainment spending is also shifting, with 38% watching movies at home instead of going to the theater and 36% spending more time watching TV at home rather than paying for outside entertainment.
- Additionally, 33% are cutting back on attending events, up from 29% in 2025, indicating that Americans are continuing to reassess the cost of out-of-home entertainment.
These behaviors reveal that inflation isn't necessarily causing consumers to stop spending altogether, but rather to become more intentional about where and how they spend. While many Americans are still making room for entertainment, travel, and dining experiences, they are increasingly seeking lower-cost alternatives that allow them to enjoy the same activities for less. For marketers, this underscores the importance of communicating value, flexibility, and affordability, particularly in categories competing for consumers' limited discretionary dollars.
What Consumers Refuse to Give Up
While inflation is causing Americans to rethink discretionary spending, some products and services remain largely protected from cutbacks. Rather than eliminating every expense, consumers are making strategic tradeoffs that allow them to preserve access to the products, subscriptions, and services they consider most essential.
- Only 11% of consumers report cutting or reducing features from their mobile phone plan.
- 15% have changed their home internet service to a lower-priced plan.
- Likewise, only 15% have canceled audio or music subscriptions, and 16% have downgraded to lower-priced TV streaming services with ads.
Consumers also appear reluctant to give up healthy food options, as only 16% report cutting back on fresh produce purchases. Rather than eliminating products and services they value most, many consumers are finding alternative ways to maintain access, with 17% paying for items in installments (i.e., Buy Now, Pay Later) and 16% using credit cards more frequently. These behaviors suggest that consumers are often protecting the categories that play a meaningful role in their daily routines and quality of life.
For marketers, this persistence highlights audiences that remain engaged despite economic pressure, making these categories particularly attractive opportunities for activation and long-term brand growth.
Even under financial pressure, consumers continue to protect the products, services, and habits they value most.
Men and Women Are Taking Different Approaches to Managing Inflation
While inflation is affecting nearly everyone, men and women are not responding in the same way. The data suggests that women are often focused on stretching household budgets and finding ways to preserve spending power, while men are more likely to make changes aimed at increasing income or improving long-term financial efficiency. These differences provide marketers with valuable insights into how consumers are adapting to economic pressure and where messaging may resonate most.
Women tend to be more focused on tactical budgeting strategies that help manage day-to-day expenses: .
- Women are 19% more likely to shop for clothing at consignment or secondhand stores.
- They are 14% more likely to switch or apply for a new credit card and are 11% more likely to use installment payment options such as Buy Now, Pay Later.
- Women are 14% more likely to cut back on buying fresh produce, such as fruits and vegetables.
- Additionally, they are 12% more likely to delay home repair or maintenance projects.
Together, these behaviors suggest that many women are actively looking for ways to maintain their lifestyles while carefully managing household budgets and cash flow.
Men, on the other hand, appear more focused on reducing larger expenses and increasing financial flexibility. Their actions suggest a greater emphasis on long-term savings and income growth rather than day-to-day budgeting.
- Men are 20% more likely to cut back on buying alcoholic beverages, including wine, beer, and spirits.
- They are 15% more likely to buy a more fuel-efficient vehicle.
- Additionally, men are 13% more likely to postpone upgrading their mobile phones.
Furthermore, men are also 13% more likely to search for a higher-paying job, highlighting a greater focus on income growth as a response to inflation
- 31% of men currently have a side job.
- Another 33% of men do not currently have a side job but are considering taking one on.
This trend suggests that many men are looking beyond spending reductions and instead seeking opportunities to increase earning potential and create additional financial security.
These differences reinforce the importance of audience-specific messaging. Understanding how men and women respond to inflation can help brands develop more relevant campaigns and connect with consumers in ways that reflect their financial realities.
Conclusion: Brands will win by aligning with consumer priorities
Inflation continues to shape how Americans spend, but consumers are not simply cutting back across the board. Instead, they are making deliberate tradeoffs, reducing spending in some areas while protecting the products, services, and experiences they value most. These priorities help marketers identify where consumers continue to see value, even as economic pressures force them to make difficult spending decisions. At the same time, differences in how men and women navigate inflation highlight the importance of audience-specific strategies.
Brands that understand not only what consumers are giving up, but also what they refuse to sacrifice, will be better positioned to create relevant messaging, identify high-value audiences, and maximize campaign effectiveness.
Source: Sources: MRI-Simmons 2026 Q3 Trending Topics Study (SP26 USA)
