Personal Consumption Expenditure Index: September 26 – October 2, 2022

There was a decrease in real demand for September due to a significant inflation acceleration in the “all goods and services” category. Compared to the same period last year, household spending in real terms is lower, and the prices rising throughout the year have led to a decrease in the real level of consumption.

And by the segments, the main impact was a reduction in real demand for food products, which is also associated with a significant increase in food inflation compared to the same period last year.

At the same time, there is an increased demand for non–food products – 16.42% compared to last year despite the inflation rate. Thus, the demand for transport and spare parts has increased. This reflects the influence of seasonality.

The demand for household appliances was positive for a significant part of the year, while it has now essentially decreased due to an increase in the number of instalment programs from several banks.

Spending on clothing and footwear decreased, but remained in the positive zone. The peak of demand for them was noted at the end of the summer and at the beginning of the autumn period.

If it comes to services, then there is an increase in expenses for air tickets and construction categories. The continued demand for air tickets is due to the low base of last year when quarantine restrictions remained.

We have noted a significant increase in the value of expenditure on construction services since the end of August. In our opinion, the period of active purchases of residential properties fell on the spring and summer periods, while repairs and fitting up of the purchased real estate are being carried out.

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