Faced with double-digit inflation, Britons are tightening their belts and cutting back on non-essential spending – but treats aren’t totally out of the question. From affordable luxuries to stripped-back hedonism, how can brands cater to this balancing act between luxury and saving?

A report from Kantar has found that people are drinking more at home because of the cost of living crisis, signaling an end to the post-pandemic bar boom. Many at-home drinkers are looking to explore the ready-to-drink market, opting for canned cocktails and unconventional flavors.

An EasyJet survey has found that Britons intend to continue prioritising travel over other discretionary spending despite economic turbulence. As holidaying remains a must, there is an opportunity for brands to fulfil desires for escapism to strengthen engagement and brand loyalty.

With cost of living pressures ramping up, will consumer spending necessarily decline? Inflation anxiety could actually drive up spending as people preempt perceived price increases in the future. Canvas8 spoke to behavioural economist Meg Elkins to unpack the phenomenon of inflationary psychology.