WPBN: It is anticipated that Christmas shopping will cost more this year than it has in the past.
With Thanksgiving weekend, Christmas Day, and New Year’s falling within a month of one another, the holiday season is typically one of the most costly times of the year.
Families usually mentally expect to spend more money around this time, but if you haven’t done your gift shopping until the last minute, you can end up spending more than you had anticipated.
The cost of living will skyrocket in 2024
The typical American still needs to deal with costs even though the cost of living has been declining as the world comes out of the COVID-19 shadow.
The present cost of living and voters’ worries about their inability to pay for necessities like food and shelter were important issues during this year’s elections. Between June 2023 and June 2024, the cost of living increased by 3%, according to data from the Consumer Price Index.
Although inflation appears to be declining as well, this does not imply that the cost of living will follow suit. Instead than measuring the absolute amount of prices, inflation monitors the rate at which prices are increasing.
A decline in inflation may not always translate into cheaper prices for products and services, even while it does show that prices are rising more slowly. If prices stay high, even if they are not rising as fast, the cost of living may still be high.
This year’s Christmas shopping is anticipated to be more costly
This year’s Christmas shopping may be more expensive than usual for customers because the cost of living is still significantly higher than it was before COVID-19.
“Our findings suggest that this Christmas will be marked by careful budgeting and a stronger emphasis on value, presenting retailers with challenges and opportunities to meet the needs of Irish shoppers,” said Keith Watt, Head of Retail at KPMG. “Price is still the primary factor influencing consumers when choosing where to shop, with 52% ranking it as a crucial consideration,” Watt said.
72% of customers anticipate that Christmas shopping will be much more expensive this year, while 36% anticipate spending less than they did last year, according to latest data from KPMG’s Next Gen Retail Survey. 56% of respondents said they expect to cut back on eating out in order to save money, and more than half said they intend to reduce their budgets for Christmas gifts. Due to price increases, 54% of respondents anticipate giving lesser gifts this year.
Whether or not the cost of living crisis is present, Christmas is often a more costly time of year to shop.
Some merchants raise their prices because they know that most customers will be shopping at the last minute to buy gifts for friends and family, while others lure customers in with Christmas discounts.
Furthermore, fraud is particularly prevalent during the holiday season, when people are frequently the targets of online shopping frauds and other hacking schemes.
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Pressure to engage in excessive consumption during the holidays
Although the holidays are typically a time to spend time with extended family and enjoy a much-needed respite at the end of the year, they are frequently marred by pressure to engage in excessive consumption.
Despite growing costs, many families might be feeling more pressure to give gifts on par with other family members. When it comes to gifts, families with small children are frequently under pressure to purchase more than they need.
It’s crucial to avoid making gifts the focus of the holiday season.
Even though it offers a chance to indulge and pamper others, it’s equally crucial to take advantage of this time to reestablish significant connections and reflect on the year as a whole.
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Keeping a level head (and budget) may help you deal with the costs in the aisles, and reflection and mindfulness are crucial during this time. 2025 is predicted to bring about some interesting financial changes, so it’s critical to maintain optimism.
