Inflation Is This Year’s Holiday Grinch As Americans Tighten Purse Strings, Give Less To Charity, And Purchase Seven Less Presents Than In 2021
Even with Black Friday weekend deals and Cyber Monday steals, new data revealed that the true grinch of this holiday season is not the furry green fictional character– it’s inflation.
In October, the most recent reporting period, inflation was 7.7%, representing a 1.2% rise from the same time last year.
Still, 2021 inflation rates were much higher than 2020, too, with the average rate last year coming out to 4.7%. In comparison, we finished 2020 with an average inflation rate of only 1.2%.
On top of that, according to the U.S. Bureau of Labor Statistics, “Inflation-adjusted (constant dollar) private wages and salaries declined 2.7% for the twelve months ending in September 2022.”
Similarly, inflation-adjusted benefits costs also declined by 3% over the same period in the private sector.
All of this means that as the season of giving dawns on us, families across the nation have been forced to tighten their purse strings and give a bit less.
This reality was only underscored by the thirty-seventh annual holiday shopping survey conducted by Deloitte Consulting.
Back in September, five thousand respondents were surveyed regarding how much they planned to spend on gifts, as well as how many presents they intended to give out this season.
And unfortunately, the results are bleak. This year, the anticipated spending for each American household is one thousand four hundred and fifty-five dollars– down eight dollars from a year ago.
dglimages – stock.adobe.com – illustrative purposes only, not the actual people
People also plan to spend less time going shopping and are lowering their gift counts.
In fact, people bought an average of sixteen gifts for loved ones last year. This December, though, Americans will only purchase an average of nine gifts for family and friends.
The humbug economy has also pushed people to get creative with their gift-purchasing tactics. An August survey conducted by Bankrate found that eighty-four percent of holiday shoppers plan to use money-saving strategies this season.
For instance, Americans will be relying on coupons and discounts much more heavily, as well as purchasing fewer items, buying cheaper or off-brand presents, and even making gifts themselves.
Still, the fate of the holiday season is not entirely sealed. Surveys are not always entirely representative of U.S. consumers, and a blip in the stock market or a decline in food or gas prices could lead to an upswing in consumer spending.
In the meantime, though, families who have been forced to stick to strict budgets are also contributing to a downturn in charitable donations. This year, the amount of donors to charities and nonprofits has plummeted over twelve percent since 2021.
If true crime defines your free time, this is for you: join Chip Chick’s True Crime Tribe
Sign up for Chip Chick’s newsletter and get stories like this delivered to your inbox.
More About:News
Read This Next
