Everyone is making travel reservations. But how much we will be able to use once we are away from everything…that remains to be seen.
Delta Air Lines reported earnings on Wednesday (April 10), and CEO Ed Bastian said there was “really strong demand” for travel, adding that “the spring and summer season is “It's going to be very strong on the travel side,” he told Yahoo Finance.
But Wednesday also brought news through the Consumer Price Index (CPI) that the prices of travel staples like clothing and dining out are rising. Overseas, there may be some respite as the euro approaches parity with the US dollar. But here at home, the CPI shows that prices rise as you move out.
In March, the index rose 0.4% overall and 3.5% for the year, faster than expected. Much of Wednesday's discussion, at least on Wall Street, is likely to focus on the dim prospects of a rate cut by the Federal Reserve, while consumers are likely feeling the pinch from rising shelter costs. The indicator for shelter costs had risen by 0.4% in March. From last year's level he increased by more than 5.7%.
Return of inflation?
Food consumed outside the home rose 0.3% month-on-month and is now 4.2% more expensive than a year ago, with food consumed at home (i.e. food ) far exceeds that of
Apparel prices rose 0.7% in March, accelerating from February's 0.6% rise and a decline from flat prices seen in the previous month.
There are some signs from recent PYMNTS Intelligence data that consumers are resilient when it comes to spending discretionary income on clothing. The Detailed Edition of Non-Essential Expenses, which continuously monitors your paycheck-to-paycheck finances, found that 36% of individuals who said they spent money on discretionary items bought clothing. I found out that
However, there are some things to note here. “For fiscal year 2025, we expect consumers overall to make prudent purchases in light of inflation and high interest rates,” Guess CFO Marcus Neubrand said in the company's latest earnings call. told analysts.
Similarly, while our data shows that the vast majority of consumers, regardless of income or demographics, are spending on restaurants and bars, there is also some evidence of pressure. According to data from the Payroll Report, more than 82% of consumers who are living paycheck to paycheck while having trouble paying their bills spend money on eating out, compared to 90% of consumers who are not living paycheck to paycheck. % spend on eating out.
Other data from PYMNTS Intelligence's Connected Data report, detailed here last month, shows that as of mid-year, 58% of consumers had made a restaurant purchase, down 9% from May, and on average Spending levels show a slight decline.
As the saying goes, the latest CPI data turned heads. We'll likely learn more about consumer spending trends as earnings season begins later this week.
