With inflation at a 40-year high and rising costs, US consumers are likely to struggle with their vacations Shopping this year.
The consumer price index remained flat in July, up 8.5% yoy.
Gasoline prices fell 7.7% in July, offsetting a 10.9% increase in food prices from July 2021 to July 2022. On the other hand, property prices increased by 5.7% in the last 12 months.
In the midst of all this, a recent Bankrate.com opinion poll notes that 40% of holiday shoppers said inflation “will affect their shopping decisions”.
At least 45% of people with annual household incomes under $50,000 said inflation is changing their shopping habits, while 41% of shoppers earning between $50,000 and $79,999 agreed.
“Christmas shopping will be different this year inflation around 40-year highs,” said Ted RossmanBankrate.com Senior Industry Analyst.
Only 33% of those earning between $80,000 and $99,999 and 34% of those earning $100,000 or more said their shopping behavior would change.
Meanwhile, winter holiday shoppers say they will start their Christmas shopping by Halloween. At least 50% said they were keeping an eye out for deals and offers by the end of October.
- “We believe that the holidays will start early again this year”, Macy’s Inc M CFO Adrian Mitchel said at the Goldman Sachs Global Retailing Conference.
“Starting earlier might help because it gives you time to allocate your cash flow and find the best deals,” Rossman added.
Holiday shopping trend
Other opinion poll suggests that 59% of Americans are stressed about buying gifts this holiday season due to higher prices.
Nearly 95% of Christmas shoppers said inflation would change the way they shop and are actively looking for ways to save money. Almost 59% of shoppers plan to buy fewer items, and 52% will take advantage of more coupons, discounts, and special offers.
Also read: Elon Musk sees deflation coming if there’s another big Fed rate hike
About 84% of vacations…
