Overall consumer spending has been stalled by inflation during August, with young people in particular spending less, according to the latest AIB Spend Trend.

Spending rose by less than one per cent, at 0.8%, with 55,000 fewer transactions overall. Of the total, 47% was by the 25 to 44 year-old age bracket, but this was the demographic returning a fall in spending.

The 25 to 34 age group spent 1.5% less than in July, while the 35 to 44 years-olds saw expenditure decline by 0.3%. All other age groups increased month-on-month expenditure, with the 18-24 and the 65+ age groups posting the largest increases of 2.6% and 2.4%.

The latter group spent most on air travel and hotels, at 17% and 14% of total respectively.

The results come from analysis of 1.1 billion AIB credit card and debit card transactions. The 0.8% rise in August meant that consumers spent more than €87m a day throughout the month, while digital wallet transactions rose 3% to around €13m per day, one-seventh of the total.

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Head of SME banking John Brennan said: “The August AIB Spend Trend shows that although overall spending in August rose slightly, consumers made fewer purchases. This could be an indicator of inflation’s impact on purchasing decisions. Those with less in savings — typically younger people — will be particularly influenced by rising costs.
 
“Digital wallet payments are up 3%, showing how increasingly popular the cashless payment method is becoming with the public. They are now spending nearly €13m a day by tapping their phones and watches. This is equivalent to nearly one in every seven euro during the month being spent via a digital wallet.”