With inflation in the U.S. at its highest in more than 40 years, global strategy consultancy L.E.K. Consulting surveyed over 2,500 Americans in October 2022 – across generations and income levels – to see how their spending has changed, uncovering the categories and items that consumers have been cutting back on as well as those that they expect to return to post-inflation.

Overall, about 85% of Americans report that inflation has had a moderate to significant impact on their day-to-day life, according to the L.E.K. survey. Only 2% said it hasn't. For example, nearly 90% said inflation has changed how they spend on food, beverage, cars and gas.

The survey also revealed who is feeling the pinch the most. Unsurprisingly, L.E.K. found that inflation challenges are especially acute for Americans earning less than $50,000 per year, with nearly 60% being significantly impacted. And while those earning more than $200,000 per year appear relatively insulated, 30% did report significant inflationary impacts – although it may not be affecting their spending as directly.

In terms of impact across generations, more than 50% of millennials and Gen Xers, many of whom are juggling children and mortgages, are feeling significant inflationary pressures – more than either Gen Z or boomers.

"A huge group of Americans has felt an effect in their lives from inflation. This cuts across income levels and generations and is directly affecting how consumers are spending their money. Decision-makers across consumer-facing industries should keep this in mind as they plan strategies for 2023," said Chris Randall, L.E.K. Managing Director and co-author of Inflation Inflated: Part 1 — The Consumer Outlook.