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We’re all cutting costs and avoiding certain luxuries right now. But what impact has this had on hospitality industries?
The gastronomy industry has taken a significant hit over the past few years, with many failing after months of lockdown and restrictions. And now we’re facing inflated costs and household bills. With budgets tighter than ever before, luxuries like eating out are often the first things to be scrapped in order to save money. So many people are entertaining at home because of the cost of living crisis.
And because of this more urgent need to save the pennies, this has led to a remarkable rise in entertaining at home. Instead of eating out, friends are much more likely to meet at one another’s houses and enjoy an evening of homecooked food and board games.
How is the current rate of inflation impacting things?
Inflation is something that is on everyone’s minds at the moment, and everyone will have noticed the steep hike in prices of standard products. The 12 months leading up to February 2023 saw an eyewatering 9.2 per cent increase across the board. This mainly effected gas and electricity prices, but also the prices of food and non-alcoholic beverages.
This is in stark comparison to February 2022 which saw a CPIH increase of 0.7 per cent in comparison to 1.0 per cent in February 2023. So, it’s clear that the events of the past year in particular have been straining household budgets.
What entertaining at home has meant for shopping habits
Entertaining at home requires more than just food. For many, it encapsulates a whole experience which is only possible with a few household items. Sales of home accessories and furniture in March rose steeply as people sought to spruce up their home for visitors.
And as people avoid the restaurants and opt for more nights in, they’re turning to streaming services to entertain them throughout the evening. Consequently, spending on such services and subscriptions to digital content saw its highest growth since last Autumn.
Is this the new normal?
For many of us, there seems to be no light at the end of the tunnel just yet. As food prices continue to rise and household bills take huge chunks out of people’s budgeting, significant cost pressures don’t suggest that people will be flocking back to restaurants any time soon.
However, by entertaining at home, employing handy tricks to preserve energy and heating, and saving money with ASOS NHS discount codes, people are still managing to have fun amid the financial crisis.
Will inflation continue to rise?
Inflation is generally expected to fall this year. Wholesale energy prices have already fallen a lot, imported goods are expected to get cheaper and because people aren’t spending as much as they used to, there will be less demand for certain things overall.
Inflation actually stopped rising in the middle of 2022 and has been stable ever since. Once it starts to fall, banks must do everything they can to keep it low.
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