“Whatever I got you last year, cut that in half”: Inflation changing spending this holiday season

73 percent of consumers are expecting higher prices this holiday season.
The busiest shopping season of the year begins Friday and runs through the end of the year.
Published: Nov. 25, 2022 at 1:44 PM EST
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CHARLOTTE, N.C. (WBTV) - Inflation and economic worries are changing how people spend during the holiday – a report shows 37 percent of American households said their financial situation is worse this year.

Despite the economy, shoppers are ready to adapt this holiday season.

“It’s an uncertain time, so you have inflation, you have questions as it relates to a potential recession,” Jonathan Bock said.

The state of the economy is shifting how some people will buy this holiday season.

“I’d say we’re going to be careful, but the spirit is still there,” Bock said.

Data from Deloitte shows household finances are at the weakest point in a decade, but spending remains steady as shoppers cut non-essentials to give gifts.

“I do plan to still spend and to buy gifts from my loved ones, but however, as far as the dollar amount, it’ll have to come down, it’ll definitely be from the heart than the wallet this year,” Richie Travis said.

Another shopper said shopping will just be for herself this year instead of the entire family.

“My priorities, I’d rather pay my bills on time and not struggle living than trying to provide and give gifts for other people,” Najah El said.

According to Deloitte, 73 percent of consumers are expecting higher prices this holiday, so people are cutting budgets, buying few gifts, and shopping during a shorter timeframe this year.

“Whatever I got you last year, cut that in half by 30 percent, 40 percent and expect that, that’s pretty much the reality of what I’m giving,” Travis said.

Locals said that, in general, the focus will be more on children and family this year as the country faces economic uncertainty.

“So our goal is to always make sure everyone has a great Christmas, but at the same time keep a closer watch of the finances this more so than any,” Bock said.

Consumers said families are more understanding this year that things will look different, and they still plan to have a good holiday season.

“I’d say there’s always a love to enjoy Christmas and the holiday season, but I’d say also as we’re going into this year, people are going to be mindful, it’s just natural,” Bock said.

Related: Holiday spending plan could keep your budget on track this season