The average middle-class consumer is feeling the sting of higher prices, but higher-income households aren’t immune to rising prices either. Even among the upper-middle class, many are swapping out indulgences for more affordable alternatives.
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I asked ChatGPT to do a little digging into which items even those with more money to spend are ditching due to inflation. Here’s what it said.
Fine Dining
Upscale restaurant traffic, everything from Ruth’s Chris Steak House to actual Michelin star restaurants has slowed as diners hunt for value menus and happy hour deals, ChatGPT said. Drawing on data from Mastercard and Black Box Intelligence, it reported that even consumers with more disposal income are trading down on restaurant spending and looking for better deals and savings.
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Premium Grocery Brands
The perks of being upper-middle class include being able to buy any brand you want, but even that trend is taking a downturn, according to ChatGPT. The AI suggested that private-label groceries (aka generics) are surging, with NielsenIQ reporting record growth for store-brand products in 2024. Wealthier households are figuring out what those in lower income classes already know — that there are significant savings to be had from private-label items.
Designer Apparel
Just because a household can afford designer clothing doesn’t mean they are currently buying these items. In fact, with the advent of secondhand marketplaces online like Poshmark, ThredUp and even eBay, more upper-middle class consumers are finding ways to afford high-end fashion without luxury prices, the AI reported.
Boutique Fitness
Boutique fitness had a heyday — Soul Cycle, Peloton, ClubPilates. While boutique classes still attract loyalty, memberships at lower-cost gyms and fitness apps are becoming the norm as even wealthier households trim their spending. In fact, ChatGPT said, multiple surveys cite “health and fitness” as one of the first areas people cut when budgets tighten.
Beauty Services
Spa and salon services may feel like essentials when the economy is strong, but shaky economic signals have even led the upper-middle class to stretch these visits further apart and invest in at-home treatments. In fact, the AI said, personal care services are among the first indulgences consumers cut back on when prices rise.
Business-Class Flights
Many wealthier consumers are kissing first class and even business class flights goodbye, downgrading to economy-plus or points redemptions. As airlines add on costs for everything from checked bags to meals, flying becomes pricier in general, and even the wealthiest are feeling that pinch.
Streaming Upgrades
When you have money to burn, it’s easy to sign up for the premium streaming subscriptions that don’t interrupt your viewing with annoying ads. Alas, even the upper-middle class are now downgrading to cheaper ad-supported tiers to save monthly costs.
Electronics Upgrades
Instead of buying the latest upgrade of their favorite devices, the wealthier end of the middle class are holding onto their iPhones, tablets, TVs and other electronics for longer, not jumping on the newest model. Some are even buying refurbished models or waiting for sales.
New Luxury Cars
The upper-middle class may still have their eye on the luxury vehicles they once felt were in reach financially, but they aren’t buying right now. ChatGPT said that luxury auto demand has cooled at the entry level. Consumers are holding onto their cars for longer or opting for certified preowned rather than new luxury leases.
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT Which Luxury Items the Upper-Middle Class Are Ditching Due To Inflation
