Historic levels of inflation haven’t stopped consumer spending yet, but buying behavior is shifting quickly. The rate of inflation again defied expectations in May, with the consumer price index rising to 8.6%, according to the US Department of Labor. Numerous market forces—rising gas and food prices exacerbated by the war in Ukraine, supply chain woes, and the ongoing labor shortage—are bound to keep inflation high in the near future.

As a follow-up to our analysis of how inflation is disrupting the retail landscape, this Analyst Take assesses how consumers are reacting to inflation—and what brands and retailers should do to meet consumers’ needs.