Inflation is causing prices to rise, making it harder for you to stretch your dollars. However, there is some optimism that prices are slowly stabilizing. The Bureau of Labor Statistics reported that prices increased by 0.5% in February, bringing the year-over-year inflation rate to 6%, which is much higher than the recommended rate for steady economic growth.
That means that now it’s harder for you to get the same value from your dollars.
Retailers on Upside are prioritizing your spending power with cash back on the things you need. And it’s a win for them, too, since everything with Upside is profitable for retailers.
When we consider the Bureau of Labor Statistics' inflation report for February 2023 and compare it to Upside's average offers for the same month, it becomes evident that these cash back offers are helping Upside users mitigate the effects of inflation when making everyday food and fuel purchases.
At the grocery store, prices increased 0.3%, while the average Upside cash back offer on a grocery bill was 6%. This means that the average Upside user earns 6 cents back for every dollar spent on groceries, which is significantly higher than the inflation rate.
At restaurants, prices increased 0.6%, while the average Upside cash back offer on the restaurant check was 10%. This means that the average Upside user earns 10 cents back for every dollar spent at a restaurant, which is also significantly higher than the inflation rate.
For regular gas, prices increased only 5 cents per gallon, while the average cash back offer from Upside was 10 cents per gallon sold (well within retailers’ average profit margin of 33 cents per gallon during this time). This means that for every gallon of regular gas sold, the average Upside user earned more than double the amount of the fuel price increase.
Upside has helped take a bite out of inflation year-over-year, not just one month in 2023.
The graph below compares price changes and the average earnings of Upside users over the past 12 months. And it shows that when you earn cash back with Upside, it helps mitigate the impact of inflation on your finances and increase your spending power.
Diners using Upside earned an average of 12.3% cash back on meals, despite an 8.4% increase in restaurant prices. Similarly, grocery shoppers earned an average cash back offer of 7% per visit, mitigating the 10.02% rise in grocery prices. Even during a period of falling fuel prices, Upside users earned an extra 11.1 cents back per gallon of regular gas.
These inflationary times impact everyone buying and selling in the real world. When you use Upside to decide where to buy, you earn more and retailers do too. It’s a win-win.
About the author: Dr. Weinandy is a Research Economist at Upside, providing valuable insights into consumer spending behavior and macroeconomic trends for the fuel, grocery, and restaurant industries. With a Ph.D. in Applied Economics, his academic research is in digital economics and brick-and-mortar retail. He is currently writing a book on leveraging AI for business intelligence. Thomas lives in Grand Rapids, Michigan.