DALLAS (NewsNation) — As inflation continues to put a strain on family finances, more Americans are doing their shopping at bargain stores.
Soaring prices are taking a bite out of consumers’ wallets, and delaying vacations or canceling fun nights out aren’t cutting it for many.
With energy costs up more than 40% and groceries 12% more expensive, families are cutting their spending on essentials and they’re using dollar stores to do it.
Average spending on groceries at discount chains shot up 71% between October and June. Spending at big-name stores decreased by 5%.
The dollar store industry is booming and poised to keep expanding amid rising sales.
Dollar Tree is expected to add 1,500 stores, Family Dollar plans to add another 800 and Dollar General is set to add 1,100 new stores this fiscal year.
Last week, the Federal Reserve raised its benchmark interest rate by three-quarters of a percentage point for a second straight time in an effort to reduce inflation.
The central bank’s decision followed a jump in inflation to 9.1%, the fastest annual rate in 41 years, and reflects its strenuous efforts to slow price gains across the economy.
The Associated Press contributed to this report.