If inflation continues to go up globally (and in Australia) - how will that affect the prices of discretionary spending?
Specifically are things like: travelling (flights and hotel stays), fashion and retail, eating out, wedding planning, renovations (trade labour and appliance + hardware supplies)?
How Will Inflation Affect Travel and Discretionary Spending?
Jaystea on 06/08/2022 - 12:33
Last edited 08/08/2022 - 12:38 by 1 other user
Last edited 08/08/2022 - 12:38 by 1 other user
Comments
Ahhhhhhh ……. parity - good but all too brief times ;)
q: How will inflation affect travel and discretionary spending?
a: Negativelyhow will that affect the prices of discretionary spending?
I guess the cost of everything you've listed will go up?
It would make it cheaper, if only inflation weren't happening at the popular tourist destinations too.
Discretionary spending during difficult times and times of inflation typically decrease, which means that demand for such goods and services decrease. Presumably the supply chain is similarly affected but perhaps not to a greater degree - so my rationale is that prices will go down (although I’m sure it’s a lot more complicated than this).
Drive past a Bunnings car park if it’s empty it’s affecting discretionary spending !!
I think travel will be more resilient to inflation given peoples built up desire to travel after 2+ years of covid lockdowns and isolation.
but but we are ozbargainers on 300k with 2 houses paid off, investment properties and a telsa and high yield amg merc
we would just spend spend spend
We actually want people to travel outside of aus - as it decreases total money supply in aus, means people dont spend money in Aus, thus lowers demand thus lowers inflation
Inflation + fuel prices + the excise coming back will affect local holidays and non essential travel greatly.
Fuel prices are already affecting food prices etc
fuel is so essential for everyone and everything. so glad price is coming down well lately. hope this is a step toward lower pressure on inflation
By raising rates this is what the RBA wants to happen… Everyone to cut spending in those categories
Raising rates is the only tool the RBA has to reduce inflation.
Once demand cools prices will come down as there will be an over supply
Peoples’ behaviour we’ll know when the data is available.
Otherwise:
People pay more for same items.
Price of 🎱 could go up to.
Edit: if AUD is strong, more international travels.