85% of Americans think brands are using inflation as an excuse to overcharge – and it’s costing them customers

As rising living costs continue to strain household budgets, consumers are rethinking their loyalty to the brands they usually buy. A new survey of 1,075 U.S. consumers from Omnisend found that 67% say higher prices have changed how they feel about brands they once liked, with more than half (56%) saying they’ve stopped buying from them. Another 22% say they trust those brands less.

Behind that shift is a growing skepticism about how companies set their prices. In fact, 85% believe brands and retailers often use inflation as an excuse to raise prices more than necessary.

That doesn’t mean consumers are rejecting every price increase outright. Better product quality (19%), higher wages for workers (16%), and rising ingredient or material costs (15%) are the most commonly accepted reasons for paying more.

“Consumers understand that costs change, but they want those changes to make sense. Clear communication about why prices are rising, whether it’s better products, higher wages or more expensive materials, goes much further than simply asking shoppers to pay more. Transparency has become part of the value consumers expect from brands,” says Marty Bauer, Ecommerce Expert at Omnisend.

Consumers are turning to short-term financial fixes to cover everyday necessities

Rising prices aren’t just changing how consumers shop – they’re changing how they pay. The same survey found that 30% have used credit to pay for essentials such as groceries, gas, utilities, rent, or medical bills in the past three months. Others have turned to:

• Borrowing from friends or family (20%)
• Buy Now, Pay Later (18%)
• Savings that were meant for something else (17%)

Groceries are at the center of that pressure, with 30% saying that’s the everyday expense that feels most “out of control.” In fact, two-thirds (65%) say groceries are where “shrinkflation” – products getting smaller while prices stay the same – is the most obvious. 29% consider this type of price increase to be the most unfair, and 59% notice instances of it regularly.

“The financial safety nets people once relied on for emergencies are increasingly becoming part of the monthly routine. When households are using credit and borrowing to cover essentials while also feeling they’re getting less for their money, it’s no surprise that confidence in both their finances and the companies raising prices starts to fade,” continues Bauer.