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Consumer expenditures in 2022

By Shane Meyers, Geoffrey D. Paulin, and Kristen Thiel

Consumers may look back and remember 2022 as the year that inflation rates reached peaks that had not been seen in 40 years. In 2022, the Consumer Price Index (CPI) for All Urban Consumers rose to the highest annual rate since 1981, peaking in June 2022 at a 9.1-percent increase over the previous year.¹ This inflationary environment raised questions about how consumers would adjust their spending habits between economic wants and needs. Constraints tied to the COVID-19 pandemic, including travel restrictions, capacity limitations, and government-imposed lockdowns, loosened in 2022, while the threat of new COVID-19 variants receded in the minds of average consumers.

How did the challenge of high inflation affect the spending patterns of the typical household? This report analyzes integrated data from the Diary and Interview Survey components of the Consumer Expenditure Surveys (CE). (For details about these components, including how their results are integrated in publication, see the technical notes section.) The data in this report are drawn from a collection of CE tables, highlighting the vast array of demographic data available for use. The incomes and expenditures shown in the tables throughout this report are expressed as nominal values, representing spending in U.S. dollars as reported by surveyed consumers.² These data are collected by the U.S. Census Bureau under contract with the U.S. Bureau of Labor Statistics (BLS). BLS then publishes the data in specific categories, usually defined by characteristics of the reference person for a given consumer unit (CU).³

Each year since 2020 has posed unique economic challenges for consumers, as the economy experienced major changes tied to the COVID-19 pandemic. The next section details the economic conditions that influenced spending patterns, shares, and dynamics in 2022.

Effects of inflation and supply chain disruptions in 2022

Prices rose by an average of 8.0 percent from 2021 to 2022, as measured by the CPI for All Urban Consumers, compared with an average of 4.7 percent from 2020 to 2021. In 2022, the 12-month percent change of inflation fluctuated, falling to 6.5 percent in December after peaking at 9.1 percent in June. Since the June 2022 peak, while the growth rate of inflation has come off its recent high, consumer prices continue to rise at elevated levels.

CUs continued to face impacts of high inflation, as shown by price trends for key expenditures. For example, the average annual change in gasoline prices in 2022 was 31.7 percent, compounding the 36.0-percent increase in 2021. Fueled by more expensive gasoline, new and used vehicle prices continued to rise in 2022, with inflation rates of 10.4 percent and 12.7 percent, respectively. Prices also spiked by 17.7 percent in household energy, 13.1 percent in electricity, and 9.9 percent in food.

To examine how inflation affected the average household, consider a CU that spent 10.0 percent more on goods and services in 2022 than in 2021. This percentage represents the change in nominal spending that the CU provided in exchange for their desired bundle of goods and services. As previously stated, the average annual rate of inflation was 8.0 percent in 2022. Real spending growth, or the difference between the nominal spending rate and the inflation rate, would be 2.0 percent (10.0 percent minus 8.0 percent). Therefore, much of the increase in the CU’s spending could be attributed to higher prices rather than to an increase in the quantity of goods purchased or a change in consumer preference.

In 2021, most supply chain disruptions were exhibited by long lines of container ships waiting at U.S. ports of entry. In 2022, these constraints extended to land-based transportation as well, with a shortage of 78,000 truck drivers, higher freight costs, depleted inventories, and other labor shortages facilitating continued supply chain issues.⁴

In 2022, fears tied to the COVID-19 pandemic began to subside as vaccines, oral medication, and therapeutics to treat COVID-19 became readily available to the public.⁵ This shift in consumer attitudes from the previous year likely increased demand for entertainment, travel, and food away from home—three expenditure categories that declined sharply due to the impacts of COVID-19. The effects of compounding inflation and lingering supply chain issues undoubtedly weighed heavily on the minds of consumers as they charted their course for spending in 2022.

Expenditure trends: 2019 to 2022

Table A displays average annual expenditures in nominal dollars and associated percent changes for both total expenditures and its major components (i.e., expenditure categories such as food) from 2019 to 2022. Average annual expenditures grew by 9.0 percent to $72,967 in 2022, up over $6,000 from 2021 and up almost $10,000 (15.7 percent) from 2019. Expenditures rose by a similar 9.1 percent in 2021, after declining by 2.7 percent in 2020—only the third time average annual expenditures had fallen in the history of the series, which began in 1984. Income before taxes in 2022 grew noticeably by 7.5 percent and continued a positive trend of income growth since 2020, when income growth decelerated from 5.4 to 1.8 percent due to the impacts of COVID-19.⁶

 Table A. Average annual expenditures by major category of all consumer units and percent changes, Consumer Expenditure Surveys, 2019–22

Item	2019	2020	2021	2022	Percent change
					2019–20	2020–21	2021–22
Number of consumer units (in thousands) [1]	132,242	131,234	133,595	134,090	[2]	[2]	[2]
Consumer unit characteristics:
Income before taxes	$82,852	$84,352	$87,432	$94,003	1.8	3.7	7.5
Age of reference person	51.6	52.2	51.8	52.1	[2]	[2]	[2]
Average number in consumer unit:
People	2.5	2.5	2.4	2.4	[2]	[2]	[2]
Children under 18	.6	.6	.6	.6	[2]	[2]	[2]
Adults 65 and older	.4	.4	.4	.4	[2]	[2]	[2]
Earners	1.3	1.3	1.3	1.3	[2]	[2]	[2]
Vehicles	1.9	1.9	1.9	1.9	[2]	[2]	[2]
Percent homeowner	64	66	65	65	[2]	[2]	[2]
Average annual expenditures	$63,036	$61,332	$66,928	$72,967	-2.7	9.1	9.0
Food	8,169	7,310	8,289	9,343	-10.5	13.4	12.7
Food at home	4,643	4,935	5,259	5,703	6.3	6.6	8.4
Cereals and bakery products	583	640	672	712	9.8	5.0	6.0
Meats, poultry, fish, and eggs	980	1,070	1,115	1,216	9.2	4.2	9.1
Dairy products	455	474	492	532	4.2	3.8	8.1
Fruits and vegetables	876	976	1,033	1,099	11.4	5.8	6.4
Other food at home	1,749	1,776	1,947	2,144	1.5	9.6	10.1
Food away from home	3,526	2,375	3,030	3,639	-32.6	27.6	20.1
Alcoholic beverages	579	478	554	583	-17.4	15.9	5.2
Housing	20,679	21,417	22,624	24,298	3.6	5.6	7.4
Shelter	12,190	12,604	13,258	14,507	3.4	5.2	9.4
Owned dwellings	6,797	7,473	7,591	8,230	9.9	1.6	8.4
Rented dwellings	4,432	4,408	4,684	4,990	-.5	6.3	6.5
Other lodging	961	722	983	1,287	-24.9	36.1	30.9
Utilities, fuels, and public services	4,055	4,166	4,223	4,549	2.7	1.4	7.7
Household operations	1,570	1,465	1,638	1,849	-6.7	11.8	12.9
Housekeeping supplies	766	837	803	787	9.3	-4.1	-2.0
Household furnishings and equipment	2,098	2,346	2,701	2,606	11.8	15.1	-3.5
Apparel and services	1,883	1,434	1,754	1,945	-23.8	22.3	10.9
Transportation	10,742	9,826	10,961	12,295	-8.5	11.6	12.2
Vehicle purchases (net outlay)	4,394	4,523	4,828	4,496	2.9	6.7	-6.9
Gasoline, other fuels, and motor oil	2,094	1,568	2,148	3,120	-25.1	37.0	45.3
Other vehicle expenses	3,474	3,471	3,534	3,834	-.1	1.8	8.5
Public and other transportation	781	263	452	845	-66.3	71.9	86.9
Healthcare	5,193	5,177	5,452	5,850	-.3	5.3	7.3
Entertainment	3,090	2,909	3,568	3,458	-5.9	22.7	-3.1
Personal care products and services	786	646	771	866	-17.8	19.3	12.3
Reading	92	114	114	117	23.9	.0	2.6
Education	1,443	1,271	1,226	1,335	-11.9	-3.5	8.9
Tobacco products and smoking supplies	320	315	341	371	-1.6	8.3	8.8
Miscellaneous	899	907	986	1009	.9	8.7	2.3
Cash contributions	1,995	2,283	2,415	2,755	14.4	5.8	14.1
Personal insurance and pensions	7,165	7,246	7,873	8,742	1.1	8.7	11.0
Life and other personal insurance	520	486	473	519	-6.5	-2.7	9.7
Pensions and Social Security	6,645	6,760	7,400	8,223	1.7	9.5	11.1
Footnotes: [1] Data are rounded to the nearest thousands. [2] Not applicable. Source: U.S. Bureau of Labor Statistics.

In 2022, spending increased in 13 of the 14 major expenditure categories. (See table A and chart 1.) Most categories exhibited similar patterns to 2021, with some growing by a larger amount. Interestingly, one category (entertainment) reversed trend, and spending declined. Among the categories experiencing sharp increases was transportation, with expenditures increasing by 12.2 percent (or $1,334) in 2022, following an increase of 11.6 percent (or $1,135) in 2021. Two main components fueled the rise in transportation spending in 2022: gasoline, fuel, and motor oil expenditures rose by 45.3 percent and public and other transportation expenditures rose by 86.9 percent. The rise in gasoline, fuel, and motor oil expenditures can be attributed both to high gasoline prices and refining capacity. Consumer prices for gasoline rose by over 31 percent in 2022, peaking in June at $5.15 per gallon nationally. Domestic annual refining capacity had also declined in 2021 to an 8-year low. Although capacity was up marginally in 2022, the additional capacity sat idle while operating levels, which can be drawn upon, declined. Therefore, a sufficient supply of petroleum products was inhibited from reaching the market and meeting consumer demand.⁷ In 2022, CUs spent an average of $845 on public and other transportation expenditures, which includes intracity and intercity modes of transportation. The 86.9-percent rise in public and other transportation expenditures over the year was driven primarily by an 88.3-percent increase in airline fare expenditures. Airline fares typically account for about 60 to 70 percent of the share of expenditures in public and other transportation expenditures.

Food spending continued to climb at an even higher rate than transportation in 2022, rising by 12.7 percent. Food at home, which consists of purchases from grocery stores and similar venues, rose by 8.4 percent. As was the case in 2021, spending by CUs on proteins (meat, poultry, fish, and eggs), produce, and dairy products led to higher annual expenditures. In 2022, these three subcategories experienced annual inflation rates of 10.9, 8.5, and 12.0 percent, respectively.

Food away from home expenditures, or spending at restaurants, take-out venues, and all other meals not prepared in one’s living quarters, rose by 20.1 percent. Food away from home expenditures increased by $609 above 2021 levels and are $113 above 2019 levels. Reduced fears of COVID-19 and increased demand for communal gatherings compared with the previous 2 years, as well as inflation at restaurants, likely contributed to this spending increase.

Housing expenditures, which account for the largest share of total expenditures, rose by 7.4 percent in 2022. High home prices, high mortgage lending rates, and particularly high rental rates for apartments placed upward pressure on spending over the year. Spending on both owned and rented dwellings rose, by 8.4 and 6.5 percent, respectively. Mortgage interest and principal payments are essential expenditures for owned dwellings, and a rapidly changing mortgage environment sent an exogenous shock through the market. The average rate for a 30-year fixed rate mortgage in 2022 was 5.33 percent, nearly two times higher than the 2021 rate.⁸ This not only resulted in higher mortgage interest payments, but pushed consumers on the margin out of owned dwellings and into the rental market. In turn, rental demand, rental rates, and thus rent expenditures were all driven upward. Higher median housing prices further compounded these issues. Federal Reserve data showed that the median sale price of a home reached $479,500 in the fourth quarter of 2022, almost another $56,000 above the 2021 fourth quarter median price of $423,600.⁹ In addition to the baseline costs associated with obtaining an owned or rented dwelling, increases in other lodging (which includes hotel/motel, B&B accommodations, etc.) of 30.9 percent; household operations of 12.9 percent; and utilities, fuels, and public services of 7.7 percent contributed to the rise in housing expenditures as well.

Healthcare expenditures grew by 7.3 percent in 2022 as consumers resumed receiving elective surgeries, after procedures were mostly halted at the onset of the COVID-19 pandemic.¹⁰ Simultaneously, many consumers likely had backlogged health concerns that needed to be addressed. A 23-percent increase in drug expenditures further bolstered healthcare expenditures.

One major expenditure category declined in 2022—entertainment fell by 3.1 percent. The decline may have been an offsetting movement from notable strength in 2021, when entertainment expenditures increased by 22.7 percent. In 2021, a surge in entertainment expenditures resulted from substantially pent-up demand to attend sporting events, concerts, and other recreational activities that were constrained by the COVID-19 pandemic in 2020. In 2022, the decrease in expenditures is due in part to a 24.5-percent decline in other entertainment supplies, equipment, and services, which contrasts its 60.6-percent increase in 2021. Pets, toys, hobbies, and playground equipment spending also fell by 6.3 percent in 2022. Although spending on fees and admissions rose by 27.4 percent, it did not offset the two aforementioned declines. Entertainment expenditure data for 2022 may reflect consumption smoothing from 2021 levels or a return to the stability of 2019 levels.

All other major expenditure categories exhibited increases between 2.3 and 14.1 percent in 2022. Personal care products and services rose by 12.3 percent, while apparel and services rose by 10.9 percent. Double-digit spending growth was observed in cash contributions, as well as in personal insurance and pensions. The education, tobacco products and smoking supplies, alcoholic beverages, reading, and miscellaneous expenditure categories all grew by single-digit rates.

Expenditure shares: how do consumers divide up their spending?

The concept of expenditure shares is critical in analyzing short and long run spending dynamics, especially amid evolving consumer preferences and priorities. In the short run, expenditure shares illustrate the difficult choices that the typical consumer faces in allocating their paycheck toward food, gasoline, rent, and other expenses. In the long run, expenditure shares instead reflect adjustments in living standards. For example, CUs that allocate lower shares to the essentials of food, transportation, housing, and healthcare can spend larger shares on entertainment, cash contributions, personal care products and services, and other discretionary goods and services that are not as affordable to those on tight budgets.

Historically, the largest share of consumer spending is allocated to housing. (See chart 2A.) From 2019 to 2022, the share ranged from 32.8 percent in 2019 to 34.9 percent in 2020. In 2022, 33.3 percent of total expenditures, or just over 33 cents of each dollar spent, was attributed to housing-related expenses. Following housing, transportation, food, personal insurance and pensions, and healthcare round out the top five expenditure shares. (See chart 2B.) For the purposes of this report, the six expenditure categories to which consumers allocate on average the smallest shares of their total expenditures are combined into the all other expenditures category.¹¹ Expenditures in this category include personal care products and services, alcoholic beverages, reading, education, tobacco products and smoking supplies, and miscellaneous expenditures.

Trends in expenditure share allocation between 2021 and 2022 are mixed. Of the 14 major expenditure categories, 5 rose, 5 remained unchanged, and 4 declined from their 2021 levels. As shown in table B and chart 2A, consumers allocated slightly larger shares of total spending toward transportation, food, apparel and services, personal insurance and pensions, and cash contributions, all rising between one and four tenths of one percentage point. Transportation expenditure shares rose by four tenths of one percentage point, driven by an over one-percentage-point increase in gasoline, other fuels, and motor oil and a half-of-a-percentage-point markup in public and other transportation. Food expenditure shares also rose by four tenths of one percentage point, due to food away from home rising by half of a percentage point, while food at home declined by one tenth of one percentage point.

Shares of entertainment, housing, healthcare, and miscellaneous expenditures all fell between one and six tenths of one percentage point. Entertainment shares returned to 2020 levels (4.7 percent), after accounting for 5.3 percent of total expenditures in 2021. Housing fell by half of a percentage point, due primarily to household furnishings and equipment declining by four tenths of one percentage point. Consumers spent the same amount (5.9 percent) on all other expenditures in 2021 and 2022, leaving the remaining 94.1 percent of spending, or 94.1 cents on the dollar, to the top eight expenditure categories.

 Table B. Percent distribution of total annual expenditures by major category for all consumer units, Consumer Expenditure Surveys, 2019-22

Spending Category	2019	2020	2021	2022
Average annual expenditures	100.0	100.0	100.0	100.0
Food	13.0	11.9	12.4	12.8
Food at home	7.4	8.0	7.9	7.8
Food away from home	5.6	3.9	4.5	5.0
Alcoholic beverages	.9	.8	.8	.8
Housing	32.8	34.9	33.8	33.3
Shelter	19.3	20.5	19.8	19.9
Utilities, fuels, and public services	6.4	6.8	6.3	6.2
Household operations	2.5	2.4	2.4	2.5
Housekeeping supplies	1.2	1.4	1.2	1.1
Household furnishings and equipment	3.3	3.8	4.0	3.6
Apparel and services	3.0	2.3	2.6	2.7
Transportation	17.0	16.0	16.4	16.8
Vehicle purchases (net outlay)	7.0	7.4	7.2	6.2
Gasoline, other fuels, and motor oil	3.3	2.6	3.2	4.3
Other vehicle expenses	5.5	5.7	5.3	5.3
Public and other transportation	1.2	.4	.7	1.2
Healthcare	8.2	8.4	8.1	8.0
Entertainment	4.9	4.7	5.3	4.7
Personal care products and services	1.2	1.1	1.2	1.2
Reading	.1	.2	.2	.2
Education	2.3	2.1	1.8	1.8
Tobacco products and smoking supplies	.5	.5	.5	.5
Miscellaneous	1.4	1.5	1.5	1.4
Cash contributions	3.2	3.7	3.6	3.8
Personal insurance and pensions	11.4	11.8	11.8	12.0
Life and other personal insurance	.8	.8	.7	.7
Pensions and Social Security	10.5	11.0	11.1	11.3
Source: U.S. Bureau of Labor Statistics.

Income and expenditure dynamics

Almost by definition, income is a leading predictor of expenditures. Those with higher incomes are expected, at least on average, to spend more on most goods and services than those with lower incomes. Increasing prices simultaneously decreases the purchasing power of all consumers, leading one to expect diminished expenditures (or at least in quantities purchased) for many goods and services. As the labor market recovered and the average income of a consumer increased amid 40-year highs in inflation in 2022, it is important to analyze how various income groups adapted their spending habits to the changing economic landscape.

In 2022, gains in nominal income of about 7 to 8 percent were observed across the board for CUs in all income quintiles.¹² (See table C.) The lowest quintile made noticeable income gains of 7.8 percent from 2021 to 2022, compared with the 0.4-percent income losses the quintile faced from 2020 to 2021. The 7.8-percent gain occurred in conjunction with a reduction in personal tax rebates of over $700 due to the lack of stimulus payments.¹³ Gains in income in 2022 can be attributed to higher wage and salary incomes, as well as cost-of-living adjustments (COLA) for Social Security payments of 5.9 percent.¹⁴

 Table C. Dollar change and percent change in average annual expenditures on major categories by income quintiles, 2021–22

Item	Lowest quintile		Second quintile		Third quintile		Fourth quintile		Highest quintile
	Over-the-year change		Over-the-year change		Over-the-year change		Over-the-year change		Over-the-year change
	Dollar	Percent	Dollar	Percent	Dollar	Percent	Dollar	Percent	Dollar	Percent
Income before taxes	1,026	7.8	2,674	7.7	4,445	7.3	8,203	8.2	17,639	7.8
Total	1,742	5.6	3,740	8.5	6,041	10.8	6,673	8.9	12,442	9.7
Food	215	4.4	730	12.6	1,187	16.1	1,397	14.8	1,741	12.5
At home	100	2.8	295	7.3	771	16.2	661	11.3	396	4.9
Away from home	116	8.6	435	24.3	417	16.0	736	20.8	1,345	23.0
Alcoholic beverages	24	11.6	11	3.7	63	15.6	44	7.1	5	0.4
Housing	522	4.1	1,254	7.5	1,603	8.0	1,218	4.9	3,903	10.1
Apparel and services	-39	-4.1	11	0.9	179	11.6	497	28.0	306	9.3
Transportation	655	15.3	168	2.1	463	4.5	1,735	13.4	3,722	19.4
Healthcare	278	9.0	189	4.4	1,148	23.9	335	5.3	76	0.9
Entertainment	-161	-11.5	-90	-4.4	393	15.4	-159	-4.0	-497	-6.3
Personal care products and services	11	2.9	46	8.3	188	30.1	71	7.8	166	12.1
Reading	12	20.4	1	1.7	14	18.3	-12	-8.8	-2	-0.8
Education	142	27.8	80	18.7	126	23.6	136	13.0	79	2.2
Tobacco products and smoking supplies	39	11.6	44	11.9	-12	-3.1	39	10.3	39	16.6
Miscellaneous	24	5.1	48	7.6	18	2.3	23	2.0	3	0.2
Cash contributions	-77	-8.2	1070[1]	76.0[1]	268	16.8	16	0.7	451	7.6
Personal insurance and pensions	97	18.0	177	8.2	402	8.0	1,334	14.1	2,448	11.1
Footnotes: [1] Cash contributions spending for the second income quintile is suppressed on the CE tables due to having a relative standard error (RSE) greater than or equal to 25 percent. The value is not suppressed here for the purposes of this report. Source: U.S. Bureau of Labor Statistics.

Total expenditures rose for all five income groups, with increases ranging from 5.6 percent for the lowest income quintile to 10.8 percent for the third income quintile. (See chart 3.) Total expenditure increases for the second income quintile were fourth highest (8.5 percent), primarily attributable to increases in cash contributions (76.0 percent), housing (7.5 percent), and food (12.6 percent).¹⁵ The third quintile and highest quintile outpaced the 9.0-percent rise in total expenditures, rising by 10.8 and 9.7 percent, respectively. For the third quintile, increases in food (16.1 percent), housing (8.0 percent), and healthcare (23.9 percent) undoubtedly placed an upward bias on total expenditures. Similarly, higher spending on food, housing, and transportation led to the change for the highest quintile. These three categories alone accounted for 75.3 percent, or $9,366 of the $12,442 spent, for the highest quintile. CUs in the highest quintile also mirrored spending dynamics seen for all CUs in table A, where increases in food, transportation, and housing expenditures beyond both 2021 and prepandemic levels occurred amid the 40-year high of inflation in 2022.

 

Analysis of spending on key categories: food, housing, utilities, vehicles, gas, entertainment, and travel

The following section analyzes trends in several key expenditures at a more granular level, while highlighting some of the demographic data that CE has available. Topics covered in this section include spending on food at and away from home by income quintile, rent and mortgage spending by metropolitan statistical area (MSA), utilities expenditures, spending on new and used automobiles, gasoline spending, entertainment expenditures, and travel expenditures.

Dining out or cooking at home: how are consumers spending food dollars?

Food is one of the basic needs of life, and the effects of the COVID-19 pandemic drastically changed the way that many consumers purchase this commodity. Restaurants shuttered due to lockdowns mandated by state and local governments in 2020, which constrained spending mostly to food at home, as opposed to food away from home. Food at home includes food purchased from grocery stores or similar venues, for which preparation is needed. Food away from home includes food from restaurants or similar venues, where the consumer pays for the service of food preparation. It may also include delivery to a consumer’s home or table or the implicit costs of nonessentials—such as convenience, ambiance, and so forth. Even after restaurants reopened, some consumers suppressed food away from home spending to minimize their exposure to COVID-19. In 2022, price increases and supply chain disruptions—some tied to, and some independent of, the pandemic—affected consumer purchases.

Note that food away from home expenditures accounted for more than 43.2 percent of food expenditures in 2019, plunged to 32.5 percent in 2020, and recovered to just over 36.5 percent in 2021. (See chart 4B.) The pattern continued in 2022, with food away from home accounting for 39.0 percent of all food dollars spent.

Table D. Diary Survey percent reporting for food expenditures, 2019–22

Type of food expenditure	2019	2020	2021	2022
Food, total	93.0	89.0	91.2	90.7
Food at home	85.3	81.1	82.7	81.9
Food away from home	74.4	60.2	64.8	65.9
Source: U.S. Bureau of Labor Statistics.

According to results of the Diary Survey, percent reporting changed within the underlying food categories. (See table D.) Note that 93.0 percent of consumer units reported a weekly food expenditure of some kind in 2019. This fell to 89.0 percent in 2020, rose to 91.2 in 2021, and fell to 90.7 in 2022. Again, the components are revealing, and follow the same pattern; percent reporting fell in 2020 and recovered partially, in 2021 and 2022. This pattern is most evident for food away from home; percent reporting fell from 74.4 to 60.2 in 2020, then rose to 64.8 in 2021 and 65.9 in 2022.¹⁶ Patterns for food away from home in 2020 and 2021 can best be explained by the pandemic. Restaurants were shuttered in 2020, constraining consumers to cooking at home. Continuing fears of COVID-19 depressed demand for food away from home in 2021. In regard to food at home, consumers adjusted their consumption schedules and may have engaged in bulk grocery purchases or more infrequent shopping trips in 2020. In 2021, supply chain issues developed, setting the scene for grocery price increases and lingering into 2022. Supply chain and other issues impacting food at home, such as diminished grain exports from Ukraine due to war, were further exacerbated by high inflation.¹⁷

Examining the effects of inflation on food at home

In 2021 and 2022, prices for food at home rose at an accelerated rate. (See table E.) While food at home rose at a lower rate (3.5 percent) than all goods and services (4.7 percent) in 2021, the rate for food at home (11.4 percent) substantially surpassed an already high rate for all goods and services (8.0 percent) in 2022.

Table E. Average over-the-year change in CPI for food and all items, 2019–22

CPI Change	2019	2020	2021	2022
Food, total	1.9	3.4	3.9	9.9
Food at home	0.9	3.5	3.5	11.4
Food away from home	3.1	3.4	4.5	7.7
All items	1.8	1.2	4.7	8.0
Source: U.S. Bureau of Labor Statistics.

Intriguingly, percent reporting for food at home did not change much from 2020 to 2022. Percent reporting experienced a small decline from 85.3 to 81.1 in 2020, likely due in part to consumers buying in bulk and taking fewer trips to the store amid the pandemic. Percent reporting then rose from 81.1 to 82.7 in 2021, before falling to 81.9 in 2022. These small differences may not be solely attributable to consumers taking fewer trips to the store, but to increased prices as well. Consumers likely found new and creative ways to combat this inflation in 2021 and 2022. For example, they may have made more careful use of their leftover food. Others may have shifted their expenditures to traditionally lower-cost foods that are both shelf-stable and able to feed a number of family members, such as small amounts of rice and pasta.

The figure for percent reporting rose in 2021 but fell again in 2022, which is consistent with this supposition. Nevertheless, it should not be considered conclusive or even strong evidence, as the differences are not tested for statistical significance.

Combining data from the CPI and CE yields interesting results from 2019 to 2022, particularly when specific food categories are studied. The integrated results of the CE Diary and Interview surveys typically include “food purchased by the consumer unit on out-of-town trips,” while CPI does not specifically collect data while on travel. The CE collects data from various outlets across the country; a consumer from City A may visit such an outlet while in City B and face different prices during their trip. Therefore, to be consistent with the CPI, food at home expenditures in the upcoming analysis are reported from the Diary Survey, rather than using the usual integrated results.

Expenditures for food at home rose from over $4,600 in 2019 to more than $5,700 in 2022, an increase of nearly 23 percent. (See table A.) Over the same period, the CPI for all goods and services rose by more than 15 percent, suggesting that consumers were buying more (or generally more expensive) groceries in 2022 than 2019.¹⁸ However, considering that prices for food at home rose by 19.3 percent from 2019 to 2022, consumers arguably had no choice but to shift to buying more expensive foods.

When examining selected components of food at home, it is immediately apparent that some expenditures rose faster than others in 2021 and 2022. (See table F1.) Specifically, this is true for items selected, both for their consistency with the basic food groups (Fruits, Vegetables, Grains, Protein Foods, and Dairy) as defined by the United States Department of Agriculture (USDA), and because these are categories for which CPI-U values are available, allowing examination of their price changes.

Intriguingly, some food at home categories exhibited their largest increases in 2020, after the onset of the COVID-19 pandemic. (See table F2.) The largest expenditure changes came in eggs (10.3 percent) and in cereals and bakery products (9.8 percent). At the same time, prices for these goods increased modestly, by 4.3 percent for eggs and by 2.2 percent for cereals and bakery products. (See table F3.) All categories, except for milk, experienced larger percent increases in expenditures than in prices in 2020, showing that the quantity purchased for key food at home items increased as well. Again, this is consistent with shifting expenditures from food away from home to food at home.

Table F1. Average annual food expenditures by selected food at home categories, 2018–22

Spending category	2018	2019	2020	2021	2022
Fresh vegetables	$283	$295	$310	$328	$353
Fresh fruits	318	322	349	378	406
Meats, poultry, and fish	897	922	1006	1047	1129
Cereals and bakery products	569	583	640	672	712
Milk, all types	116	112	110	120	128
Eggs	64	58	64	68	87
Source: U.S. Bureau of Labor Statistics

 Table F2. Percent change in average annual food expenditures by selected food at home categories, 2018–22

Spending category	2018–19	2019–20	2020–21	2021–22
Fresh vegetables	4.2	5.1	5.8	7.5
Fresh fruits	1.3	8.4	8.3	7.4
Meats, poultry, and fish	2.8	9.1	4.1	7.8
Cereals and bakery products	2.5	9.8	5.0	5.9
Milk, all types	-3.4	-1.8	9.1	6.7
Eggs	-9.4	10.3	6.3	27.7
Source: U.S. Bureau of Labor Statistics.

 Table F3. Percent change in CPI by selected food at home categories, 2018–22

CPI category	2018–19	2019–20	2020–21	2021–22
Fresh vegetables	3.8	2.6	1.1	7.0
Fresh fruits	-1.4	-0.8	5.5	7.9
Meats, poultry, and fish	1.0	6.3	6.8	9.6
Cereals and bakery products	1.4	2.2	2.3	13.0
Milk	2.7	5.5	3.4	14.0
Eggs	-10.0	4.3	4.5	32.2
Source: Bureau of Labor Statistics.

As the pandemic continued, expenditures in these food at home categories continued to increase, likely due to inflation reaching historic levels in 2022. Of note is the increase in expenditures for eggs, rising by 27.7 percent in 2022. At the same time, egg prices rose by 32.2 percent. Because egg prices rose faster than egg expenditures, it is possible that consumers purchased fewer eggs in 2022, while paying more overall for eggs they did purchase during the year.

Comparing spending on food at and away from home by income quintile

Although examining total food expenditures by quintile may have its merits, this is a case where the total is less than the sum of its parts. In other words, examining the two components— food at home and food away from home—separately is far more interesting.

Expenditures on food at home increased each year in every quintile except the third from 2019 to 2022. For the third income quintile, expenditures decreased from 2019 to 2022. Given the closure of restaurants and other venues where one might purchase food away from home, it makes sense that consumers in most quintiles spent more at grocery stores and other venues included in the food at home category. However, once venues away from home started to reopen, why did food at home expenditures increase, rather than decrease or stay the same? The likely reason is inflation. Prices for food at home rose substantially in 2021 (3.5 percent) and even more so in 2022 (11.4 percent), meaning that even purchasing the same quantity of groceries as in 2020 would result in higher expenditures. Additionally, even if the percentage increase in prices was higher than the percentage decrease in groceries purchased (as more consumers returned to purchasing food away from home), expenditures would still be higher in 2021 and 2022 than in 2020.

Examining food away from home more closely, expenditures were lower in 2022 for the lowest income quintile (-8.9 percent) and third quintile (-1.8 percent) than in 2019, but higher in the fourth quintile (10.1 percent), highest quintile (4.8 percent), and second quintile (1.9 percent). (See table G.) More generally, expenditures were substantially lower in 2022 than 2019 for the lowest income quintile, about the same for the second and third quintiles, and noticeably higher for the fourth and highest income quintiles. This allows one to understand how inflation may impact whether consumers choose to purchase food at home or food away from home. Members of the lowest quintile have the most budget constraints. Regardless of inflation, they must purchase food and will undoubtedly shop at the lowest cost alternative (i.e., grocery stores and similar places) for the food they need. If basic goods have substantially risen in price, these consumers have less money to spend at restaurants. As a result, they may purchase even more food from grocery stores than they would have in the absence of inflation—or they may apply the money they would have paid to restaurants to other basic goods and services that have also experienced price increases, such as rent, utilities, and apparel and services.

Table G. Percent change in annual average food expenditures by income quintile, 2019–22 

Spending category	Lowest	Second	Third	Fourth	Highest
Food, total	15.7	11.6	14.0	19.0	12.3
Food at home	29.9	17.4	24.9	25.6	19.5
Food away from home	-8.9	1.9	-1.8	10.1	4.8
Source: Bureau of Labor Statistics.

What did consumers spend on housing in 2022?

Like food, housing is largely a dichotomous topic. People must decide whether they want to rent or own their dwelling. Their choice is, among many other factors, influenced by prevailing interest rates for a mortgage and the overall level of housing prices. The onset of the pandemic had a strong impact on economic activity and behavior, heavily influencing the housing market and, by extension, a CU’s decision to rent or buy.

Comparing renting and homeownership rates in 2022

After reaching a decade high of 66 percent at the beginning of the COVID-19 pandemic (2020) and declining by 1 percent in 2021, homeownership rates remained stable at 65 percent in 2022. (See chart 5.) The corresponding rental rate remained at 35 percent, maintaining its average for the time series from 2004 to 2022. Rising mortgage rates leading to higher mortgage payments, as well as sluggish growth in new housing supply, could be responsible for the continual crowding out of first time homebuyers. In turn, CUs in the lowest age brackets were forced to remain in the rental market. Shelter prices rose by 5.9 percent on an annual basis, up from the 2.7 percent average in 2021, and further compounding these issues.

Homeownership and rent spending by region

The year 2022 could be characterized by lingering effects of the COVID-19 pandemic, including remote work postures, population shifts away from coasts, sustained low housing inventory, and high interest rates.¹⁹ These factors have caused housing demands to change noticeably across the country, while rising housing prices and mortgage payments have severely limited consumer budgets.

In general, it was more costly to rent than own in 2022. Examining a group of selected MSAs, average CU rental expenditures were much higher than average mortgage payments for all MSAs except for San Francisco.²⁰ (See chart 6A.) The difference between rental expenditures ($18,455 or $1,538 per month) and mortgage payments ($9,027 or $752 per month) was largest in the Miami MSA. In this case, being a renter was more than twice as costly as being a homeowner.

Living in the San Francisco MSA was the most costly for both renters and homeowners—in 2022, the average renter paid $23,493 (or $1,958 per month), while homeowners paid $24,665 (or $2,055 per month). The Chicago MSA had the lowest rental expenditures ($12,027 or $1,002 per month), while the Miami MSA had the lowest mortgage payments ($9,027 or $752 per month).

There was a mixture of rising and falling rental rates across the selected MSAs in 2022. (See chart 6B.) Rental expenditures in the Chicago and San Francisco MSAs fell by 12.9 and 11.5 percent from their 2021 levels, respectively. Population losses in these two MSAs could be responsible for these declines.²¹ However, expenditures in the other MSAs grew. The Phoenix and Miami MSAs saw the largest increases in rental expenditures, by 24.7 percent and 14.4 percent, respectively.

Although rental expenditures were nominally higher than mortgage payments, mortgage payments increased by much more than rental expenditures did in 2022. The Dallas MSA saw the greatest difference between mortgage payment (47.2 percent) and rental expenditure (4.5 percent) increases. The Dallas MSA’s recent population growth of 2.2 percent may have contributed to this difference.²²

Comparing utilities expenditures of urban and rural consumers

Aside from the actual purchase of a house and keeping up with monthly mortgage payments, one of the most important bills consumers spend money on is utilities. Whether it be natural gas, electricity, or home heating and fuel oils—the lights must be kept on; key appliances must function; and when the seasons dictate, the air conditioner or heating system must be run. Recent spikes in utility prices make meeting these basic needs more difficult. Household energy prices rose by over 17 percent and electricity prices rose by over 13 percent in 2022. This inflation could prompt demographic groups who spend a greater share on utilities to alter their budget allocation for other expenditures. So, how do utilities spending patterns differ between urban and rural CUs? What characteristics or lifestyle choices can influence heterogeneity in utilities demand among urban and rural CUs?

Charts 7A and 7B show average annual expenditures for three selected utilities that are essential to urban and rural CUs in powering homes, appliances, and heating and cooling systems: natural gas, electricity, and fuel oil and other fuel oils.²³ Natural gas spending fluctuated within a $30 range until 2021, when spending increased rapidly by over $90 (20 percent) to $552 for urban CUs. Rural CU expenditures also grew at a pronounced rate in 2022 after increasing modestly from 2019 to 2021, but were lower than urban CU expenditure levels, at $317. The average price of natural gas per million British thermal units (BTU) rose by 64.2 percent in 2022, undoubtedly influencing the rise in spending for both urban and rural CUs.²⁴

This acute price growth may have led rural consumers to substitute fuel oils for natural gas to heat their homes. Examining the selected expenditures of natural gas, electricity, and fuel oils as a share of their summed values, the share of rural fuel oil spending grew by 1.3 percent in 2022, compared with 0.8 percent for natural gas. In general, fuel oils were in more abundant supply outside of urban centers and MSAs. This was especially true in the Northeast, where prior regulatory policy and price controls targeting natural gas shaped consumer demand for fuel oils.²⁵ The relative abundance in fuel oils meant a more cost-effective method to heat homes in rural areas, which are an average 30 percent larger than urban homes.²⁶ A larger housing footprint for rural consumers also influenced their higher electricity consumption and spending ($1,856 per year) compared with their urban counterparts ($1,670 per year) as shown in charts 7A and 7B. Electricity expenditures have risen every year from 2019 to 2022 for both urban and rural consumers. On the other hand, expenditure shares for electricity peaked in 2020 as individuals spent more time at home due to stay-at-home orders, maximum telework postures, and other COVID-19 pandemic restrictions imposed by state and local governments. Between April 2020 and July 2020 alone, residential electricity usage was up by 10 percent, and Americans spent an excess of $6.0 billion on at-home power consumption.²⁷

Spending on new and used vehicles in 2022

The purchase of a car is one of the most consequential decisions a CU can make, aside from purchasing a new home or renting an apartment. Car and truck prices continued to rise sharply in 2022, continuing a trend from 2021, due to ongoing supply chain issues and microchip shortages.²⁸ While growth in used car prices more than halved from 26.6 percent in 2021 to 12.7 percent in 2022, growth in new car prices nearly doubled from 5.9 to 10.4 percent. The growth in new car prices made purchasing a new vehicle the most expensive in recent history, according to Kelly Blue Book (KBB).²⁹ The microchip shortage discussed in “Consumer Expenditures in 2021” persisted in 2022, keeping new car inventory and sales depressed. As a result, CUs would presumably favor the used car market over the new car market. Higher borrowing costs would also place upward pressure on monthly payments for both new and used vehicles. CUs could choose to delay car purchases, thus weakening demand and preventing prices from rising higher. So, how did CUs adjust their spending habits for new and used cars and trucks amid climbing prices, limited inventories, and a shifting market landscape?

In 2022, persisting supply constraints and increasing interest rates led to considerable increases in auto loan rates.³⁰  Chart 8A shows mean quarterly expenditures for CUs who purchased at least one new car or truck from 2019 to 2022.³¹ While new car and truck expenditures declined by $586 in 2022, percent reporting for new cars and trucks was essentially unchanged. Some CUs chose to forgo new car and truck purchases for another year, while CUs with more disposable income absorbed the higher prices and purchased new cars and trucks. Percent reporting declined for new trucks in 2022, while mean quarterly expenditures for new trucks declined slightly from $43,670 to $40,152—but remained over $7,000 above 2019 levels. However, percent reporting rose for new cars in 2022, resulting in a slightly larger sample of new car purchasers and an increase in mean quarterly expenditures for new cars of $7,076. With gasoline prices up by another 31.7 percent in 2022, CUs who purchased a new vehicle may have substituted the more fuel-efficient choice of cars relative to trucks.³² The opposing forces of supply and demand have likely led to an imbalance in the new vehicle market. The supply of domestic auto inventory fell to its lowest level in history in 2022.³³ With recent declines in supply likely due to supply chain constraints, as well as declining demand likely due to high borrowing costs, mean expenditures for CUs who purchased new cars or trucks remained high over the year.

Chart 8B shows mean quarterly expenditures for CUs who purchased at least one used car or truck from 2019 to 2022. Low inventory in the new car and truck market kept demand for used vehicles elevated in 2022, causing expenditures to climb beyond 2021 levels. Mean quarterly expenditures for CUs who purchased a used car or truck in 2022 were $17,117—$1,110 higher than 2021 and $3,834 higher than 2019. Mean quarterly expenditures for CUs who purchased a used car also increased in 2022, while expenditures for CUs who purchased a used truck declined slightly. With elevated borrowing costs in 2022, the expectation is that consumer demand would fall. As a result, CUs would likely delay the purchase of their next automobile to allow the market to return to equilibrium, unless consumer demand for vehicles is inelastic enough to absorb the price shock. This effect is reflected in used car and truck percent reporting data, which fell by almost three quarters of one percentage point in 2022 and accounted for higher used car and truck demand. The percent reporting for used cars and used trucks also each separately declined over the year as sedan, pickup truck, and SUV prices are 41-42 percent higher than before the COVID-19 pandemic.³⁴

High gasoline prices influence spending in 2022

At the onset of the year, 2022 was poised to be a majority return to prepandemic driving conditions. Fears tied to the COVID-19 pandemic were waning, the domestic labor force was gradually reducing their telework postures and returning to in-person office work, and families were once again ready to hit the open road.³⁵ Consumers had endured a 39.7-percent increase in gasoline prices in 2021, as prices climbed from the half-decade low of $2.24 per gallon in 2020 to $3.13 in 2021. (See chart 9A.) However, the average price of a gallon of gasoline continued to increase to $4.19 in 2022, 49 cents higher than the previous maximum in the time series of $3.70 in 2012. With higher gasoline prices tied to higher driving demand and geopolitical tensions, gasoline spending and prices rose 45.4 and 31.7 percent in 2022, respectively, as measured by CE and the CPI.³⁶ (See chart 9B.)

Just like any other good or service, two factors determine total expenditures for gasoline: the price of the good and the quantity purchased. All else equal, an increase in the price of gasoline per gallon, such as the $1.06 rise in 2022, will result in higher gasoline expenditures. To understand this, consider the equation G=P × Q, where G is total gasoline expenditures, P is the price per gallon, and Q is the quantity of gallons purchased. Analyzing chart 9B alone, one cannot definitively state whether the rise in gasoline expenditures was caused by a change in price, in quantity purchased, or a mixture of the two. Further, note that expenditures could rise due to an increase in price, even if quantity purchased declines in response to that increase, if prices rise by a larger percentage than quantities purchased decline.

One method for delineating whether changes in expenditures were influenced by price or quantity is by analyzing the price elasticity of demand for a good. Price elasticity of demand is a measure of how much consumers change the amount of a good they buy when the price of that good changes. Price elasticity of demand can be influenced by factors such as the percentage of total expenditures for which a good (gasoline in this case) accounts, how many close substitutes exist for the good, and whether the prices of the substitutes for the good of interest are higher or lower than the new price of the good of interest. For instance, if the price elasticity of demand for gasoline was more elastic and gasoline prices increased, if people see that it is cheaper for them to take alternative modes of transportation (like public transportation or use ride-sharing apps), they may substitute gasoline for one of those modes of transportation instead. Price elasticity of demand in this case is the responsiveness, in terms of how much less gasoline people buy when gasoline prices rise.

Regardless of reason, both prices and quantities can drive spending behavior. The amount of total expenditures directly depends on the magnitude of each respective change. Price can rise, quantity consumed can fall, and expenditures can still rise if the percent price increase is larger than the percent quantity decrease. This also works in the reverse fashion; prices can fall, and expenditures can rise, when the percent increase in quantity purchased is larger than the percent decrease in prices. However, in 2022, it was evident that both the price of gasoline and the quantity purchased were moving concurrently, although at varying magnitudes. Prices increased by over $1.00 per gallon, while quantity purchased increased slightly by about 1 gallon per week (indicating relative inelasticity of gasoline with respect to price).

To analyze this concept graphically, chart 9B shows the percent change in gasoline spending and the CPI-U for gasoline from 2008 to 2022. Chart 9A shows the average annual gasoline prices and weekly gallons of gasoline purchased, also from 2008 to 2022. Weekly quantity of gallons of gasoline are computed by first taking CE estimates for total gasoline expenditures, dividing that value by average price data for gasoline from the CPI, and then dividing by 52 to get a weekly estimate. Presenting quantity in a weekly figure provides a more realistic model of the frequency in which consumers fill their tanks: on a weekly and not annual basis. In addition, note that BLS produces price indexes and average price estimates strictly for urban consumers, so charts 9A and 9B strictly capture urban expenditure data. Furthermore, CPI average price estimates strictly capture gasoline and not motor oil or other fuel prices. CE table estimates do capture motor oil and other fuels. Therefore, CE gasoline data are extracted from the detailed level type of area tables (unpublished, but available on request) described in the technical notes section of the report (See section titled, “Detailed tables, 1984–22.”)

To obtain the most detailed explanation of gasoline spending patterns from 2008 (the first full year of the recession denoted by the National Bureau of Economic Research [NBER] as having occurred from December 2007 through June 2009) to 2022 (where the U.S. recorded its highest annual change in inflation in 40 years), charts 9A and 9B can be analyzed in conjunction.³⁷ The underlying variables of chart 9A determines the dynamics of chart 9B. As previously stated, gasoline prices and expenditures both noticeably rose, by a respective 31.7 and 45.4 percent. (See chart 9B.) This increase in prices was bolstered by a concurrent increase in the quantity of gallons purchased by 0.98 gallons per week in 2022. The quantity of gallons purchased per week returned to near identical levels with 2020, although 2020 had been especially influenced by imposed lockdown orders that caused lower driving demand. Telework rates in 2022 also declined to 34 percent, as more individuals began commuting to their workplaces once again.³⁸

A key observation drawn from chart 9B is that the inflation rate for gasoline prices remained tremendously high, but still decelerated from 2021 to 2022. This deceleration can be attributed to two factors. First, an over-the-year price increase higher than the extreme 36-percent increase seen in 2021 would have been necessary in 2022 for there to be an acceleration in trend. Since gasoline prices fell from a peak of $5.15 per gallon in June 2022 to $3.50 per gallon in December 2022, the potential over-the-year increase for 2022 was weakened. Second, growth in expenditures outpaced growth in prices for the first time since 2012, when expenditures rose by 3.9 percent and prices rose by 3.3 percent.

Examining other years, gasoline expenditures fell by considerably less than gasoline prices in 2015. This decline in expenditures was primarily driven by changes in price rather than changes in quantity. In 2015, the United States was in the middle of a decade-long economic expansion, and gasoline prices fell by 27.2 percent. Consumers purchased over two additional gallons per week in 2015 compared with 2022, but spent less overall. In 2017, growth in expenditures severely lagged prices and the quantity of weekly gallons purchased fell, with expenditures rising by 3.1 percent and prices rising by 13.1 percent. Thus, in both 2015 and 2017, consumers adjusted their gasoline spending based mainly on changes in price rather than changes in quantity.

Abrupt changes to entertainment expenditures in 2022

The year 2022 marked an abrupt change in entertainment spending patterns. Entertainment expenditures declined by 3.1 percent, a sharp contrast to the 22.7-percent gain in 2021. (See table A.) Chart 10A shows that audio and visual equipment and services was the entertainment category with the highest average expenditures in 2022, at over $1,000 for the average CU. Pets, toys, hobbies, and playground equipment was the second highest entertainment category, at slightly over $900 spent annually for the average CU.

Entertainment was the only major CE expenditure category that fell in 2022, slightly offsetting a 2021 surge in expenditures that resulted from substantially pent-up demand to attend sporting events, concerts, and other recreational activities that were constrained by the COVID-19 pandemic in 2020. (See chart 1.) The 2022 weakness in entertainment expenditures was driven by declines in the subcategories of other entertainment, supplies, equipment, and services (-24.5 percent); and pets, toys, hobbies, and playground equipment (-6.3 percent). Chart 10B shows that the photographic equipment, supplies, and services subcategory grew by a considerable 29.5 percent; however, the category is the smallest in terms of spending, so it had minimal impact on total entertainment expenditures. As CUs continued attending more concerts, shows, and movies in 2022, fees and admissions expenditures increased by an additional 27.4 percent following the sharp 54.0-percent increase in 2021 from the sharp decline in 2020. Although CUs spent the most on audio and visual equipment and services in 2022, expenditures in the category were virtually unchanged from 2021 levels.

After the onset of the COVID-19 pandemic, many people acquired pets because they had more time at home and more free time due to stay-at-home orders and increased telework postures. As a result, the pet-related subcategories under the pets, toys, hobbies, and playground equipment expenditure category increased over 2020 and 2021. (See table H.) However, the pandemic trend of pet acquisition may be slowing down or declining, as spending for some of these subcategories declined in 2022. For example, expenditures for veterinary services increased in 2021 (10.3 percent), but decreased in 2022 (-26.3 percent). Pet purchase, supplies, and medicine expenditures also increased sharply by 54.3 percent in 2021 but declined by 8.2 percent in 2022. In contrast, pet services (35.3 percent) and pet food (11.9 percent) both increased in 2022. Since pet services includes expenditures for boarding pets for travel, that increase was consistent with increases in travel expenditures.

Table H. Percent change in pets, toys, hobbies, and playground equipment expenditures, 2019–22 

Type of pet expenditure	2019–20	2020–21	2021–22
Pet food	18.67	-7.95	11.88
Pet purchase, supplies, medicine	-9.15	54.26	-8.17
Pet services	-19.46	29.70	35.34
Vet services	-4.38	10.27	-26.27
Toys, games, arts and crafts, and tricycles	18.49	17.44	-13.49
Playground equipment	177.53	-1.89	-48.14
Source: U.S. Bureau of Labor Statistics.

Within pets, toys, hobbies, and playground equipment, the largest expenditures came in playground equipment in 2022. During the pandemic lockdowns, consumers made substantial purchases in backyard playsets, swings, and other outdoor playground equipment to keep their children entertained while staying at home. As a result, playground equipment expenditures skyrocketed by a record 177.5 percent in 2020. In contrast, playground equipment expenditures declined by 48.1 percent in 2022. Demand has likely fallen due to a large number of consumers purchasing playground equipment in 2020 and 2021, thus leading to a smaller pool of consumers wanting to make new purchases in 2022.

Expenditures soared in other entertainment, supplies, equipment, and services in 2020 and 2021, including in docking fees, vehicle rentals, athletic gear, and bicycles.³⁹ (See table I.) During these years, many people felt comfortable engaging in outdoor activities because they were able to easily maintain social distance from other participants while doing so. In 2022, expenditure subcategories in other entertainment, supplies, equipment, and services declined as pandemic restrictions loosened and people felt more comfortable participating in indoor activities once again. Interestingly, winter sports equipment expenditures increased by 61.2 percent in 2022, after changing little over 2020 and 2021.

 Table I. Percent change in other entertainment supplies, equipment, and services expenditures, 2019–22

Type of entertainment expenditure	2019–20	2020–21	2021–22
Rental of recreational vehicles	-24.55	125.74	-9.43
Boat and trailer rental out-of-town trips	11.31	87.43	-28.96
Rental of other vehicles on out-of-town trips	-32.96	120.62	10.84
Docking and landing fees	112.90	14.19	1.12
Sports, recreation, and exercise equipment	26.71	47.46	-22.80
Athletic gear, game tables, and exercise equipment	32.03	110.47	-28.16
Bicycles	70.61	37.90	7.98
Camping equipment	-37.59	16.40	-4.92
Hunting and fishing equipment	41.98	10.12	-47.88
Winter sports equipment	-10.37	12.04	61.16
Water sports equipment	33.06	-2.89	-26.76
Other sports equipment	17.35	8.07	-21.49
Rental and repair of miscellaneous sports equipment	1.83	10.36	-27.76
Source: U.S. Bureau of Labor Statistics.

Travel expenditures see large increases in 2022 after 2 years of lower spending

With the onset of the COVID-19 pandemic, consumer expenditures allocated to out-of-town trips declined by 56 percent in 2020, falling from $2,100 to $926. (See table J.) Despite a rise of 95 percent in 2021 to $1,803, they were still 14 percent lower in 2021 than in 2019. At the height of the COVID-19 pandemic, in 2020, four of the five major components of spending on out-of-town trips (food, alcohol, lodging, and entertainment) declined between 49 and 54 percent. However, the transportation component was the hardest hit, falling 65 percent in 2020. Similarly, transportation on out-of-town trips recovered least in 2021, with expenditures ($597) 30 percent lower in that year than in 2019. Expenditures for the remaining subcategories remained 2 to 7 percent lower in 2021 than in 2019. The exception was entertainment on trips, for which expenditures were 2.4 percent higher in 2021 than in 2019.

By 2022, however, all major travel expenditure categories surpassed 2019 levels. In percentage terms, total travel expenditures were 27 percent higher in 2022 than 2019. Among the components, transportation on trips grew the least from 2019 to 2022 (20 percent), while lodging on trips grew the most (35 percent).

Table J. Allocation of out-of-town trip expenditures, 2019–22

Item	2019	2020	2021	2022
Travel, total, component shares	$2,100	$926	$1,803	$2,671
Food on trips	423	208	394	540
Alcohol on trips	70	35	66	93
Lodging on trips	619	318	604	837
Transportation on trips	849	300	597	1022
Entertainment on trips	139	64	142	180
Source: U.S. Bureau of Labor Statistics.

Regardless, the allocation of dollars spent within the travel category varied little from 2019 to 2022. The two exceptions were the subcategories of lodging and transportation. (See chart 11A.) In 2019, lodging accounted for about $3 out of $10 spent on travel, while transportation accounted for about $4 out of $10 spent on travel. In 2020, the share for lodging rose, while the share for transportation fell, with both categories accounting for about $1 in $3 spent on travel. In 2021, this allocation was nearly unchanged. In 2022, both lodging and transportation shares increased. The lodging share grew slightly above its prepandemic level and accounted for about $3 in $10 spent on travel, while the transportation share grew closer to its prepandemic level and accounted for slightly less than $4 in $10 spent on travel.

 

In general, travel expenditures consist of many subcategories for which percent reporting is individually available upon request. However, for the aggregate categories, no such value is available. Nevertheless, the subcategories of nearly all travel expenditures follow the same pattern: percent reporting plunged in 2020, started to recover in 2021, and nearly returned to 2019 levels in 2022. Chart 11B shows this pattern in percent reporting for the airline fares subcategory, which accounted for 59 percent of transportation on trip expenditures and 23 percent of total travel expenditures in 2022.

Intriguingly, the increase in travel expenditures from 2019 to 2022 is not merely due to price increases as tracked by the CPI. Adjusting expenditures in 2019 to real 2022 dollars (the amount of purchasing power the consumer would have to forego in 2022 to make the same purchase in 2019) shows that travel expenditures were still higher in 2022 than in 2019. That is, the $2,100 nominal dollars spent on travel in 2019 convert to $2,403 real dollars in 2022, with 2022 prices being approximately 14.5 percent higher. Thus, in real 2022 dollars, expenditures for travel ($2,671) were 11 percent higher than in 2019 ($2,403), ranging from a 5-percent increase for transportation to an 18-percent increase for lodging. Note that this does not necessarily mean consumers were buying more lodging or transportation in 2022 than in 2019—prices for these commodities may have simply risen faster than other prices. Percent reporting was similar for most travel components in 2019 and 2022, which is also consistent with the hypothesis that prices for travel expenditures rose faster than those for other expenditures.