Consumer credit spending on groceries and fuel increased by double digits in June
It’s no surprise that in an inflationary era, consumers pay more for basic necessities, including food and fuel. The last Mastercard SpendingPulse A report from New York-based credit card company Purchase confirms that rising prices spurred a 14% increase in grocery sales last month from a year ago and a jump of 42 .1% of fuel and commodity sales. On a three-year basis, grocery sales jumped 24.8% between June 2019 before the pandemic and June 2022, while fuel soared 55.7% during that time.
Overall retail consumer spending in June (excluding autos) was up 9.5% from last summer, again fueled by inflation. When it comes to discretionary spending, people seem to be leaning more toward jewelry (up 16.2% from 2021) and travel experiences right now, with airlines and accommodation seeing increases, according to Mastercard.
“Sector by sector, we see a mixed picture of the impact of inflation on core consumer spending versus discretionary consumer spending,” observed Steve Sadove, senior adviser for Mastercard and former CEO and chairman of Saks Inc. “One notable fact is that travel sectors such as airlines and accommodation continue to show signs of strong demand.
Meanwhile, as the ripple effects of relentless inflation continue across many business and commerce sectors, Mastercard is responding with new tools and services. Earlier this summer, the company launched PayPal Business Cashback Mastercard, a card with no annual fee and 2% cashback on all purchases with no cashback limit can be earned. The card allows small businesses, including independent grocers and smaller and start-up brands and manufacturers, to pay for day-to-day and unexpected expenses while earning rewards on purchases.
“As small business owners continue to recover from the challenges of the past two years, it’s more important than ever to have multiple financing options to meet their capital needs,” said Bernardo Martinez, vice president of Global Merchant Loans for San Jose, CA. PayPal. “The PayPal Business Cashback Mastercard gives merchants greater value, more choice and the added flexibility they need to manage their business finances, delivering one of the best values available on business credit cards with no annual fee today. today.”