SAN DIEGO (KGTV) — San Diego's inflation rate was the highest in the nation last month, but most people can still afford a tube of lipstick.
The "lipstick effect" — a theory that people buy small treats when they can't afford big purchases — could be happening right now as consumers face economic uncertainty, according to experts.
"It just made me feel better," said June Gibson, who found comfort in small purchases during difficult financial times.
"When I was getting a divorce several years ago, I was kind of short on money. I would buy one of two things: A tube of lipstick, or a bar of goat milk soap. And that was my treat. That was all I could afford," Gibson said.
This consumer behavior pattern is well-documented, according to Uma Karmarkar, a consumer behavior expert at UCSD.
"The economy's not doing that well, things in general are expensive, so you'll see an increase in the purchase of things like lipstick," Karmarkar said.
Karmarkar explains that this trend of buying small, affordable treats is more common during periods of economic uncertainty. Consumers' confidence in the economy has dropped over the last four years, according to an annual survey by the Conference Board think tank.
"If people have to restrain themselves in a bunch of different domains - you could have that kick in of 'well I can give myself this little treat here because I'm foregoing so much and being so good in so many other places,'" Karmarkar said.
While these smaller purchases can boost consumer morale, Karmarkar warns that moderation is key.
"The problem becomes if the impulse buying takes over. All those little things add up. Because we love new things and new experiences, we can try to encourage ourselves to look for them outside commercial spaces," Karmarkar said.
The thrill of shopping can be addicting, Karmarkar notes. She encourages consumers to pay attention to their habits before costs add up, or try new activities to save money.
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