‘Revenge spenders’ may befuelling inflation

Coping mechanism: The trend of ‘revenge spending’ is clearly seen in the midst of a major upheaval such as the Covid-19 pandemic. — MARK HILLARY/Creative Commons

INFLATION has hit levels around the world unseen in decades. Consumer prices rose to their highest level in June 2022, breaking a 40-year record in the United States. Similar inflationary effects were felt in other parts of the world.

While these increases have been blamed on the rise in food and global energy prices due to the Russia-Ukraine war, stressed consumers on a spending spree are overlooked as a possible cause.