Americans preparing for the holiday season will likely find their shopping money covering fewer gifts as inflation grows and supply chain issues make items more difficult to find.
A survey released by National Retail Federation and Prosper Insights & Analytics on Thursday revealed the average American household will spend approximately $997 on gifts and holiday items.
— National Retail Federation (@NRFnews) October 21, 2021
This year, however, inflation is up, with consumer prices up 5.4 percent. The spending, which is resembles the numbers from last year’s survey, will have less buying power in 2021.
“Similar to last year, consumers are prioritizing gifts for family and friends and purchases related to holiday celebrations such as food or décor. Overall plans for holiday spending remain slightly below the pre-pandemic high of $1,047.83 in 2019, as fewer consumers plan to spend on non-gift purchases for themselves and their families,” the group reported.
Perhaps on the positive side, the supply chain crisis has led to more people in the survey making plans to shop early.
“However, consumers are motivated to check items off their lists earlier than ever. Half (49%) of holiday shoppers will start browsing and buying before November, up from 42 percent in 2020 and the highest in the survey’s history,” the group reported.
The holidays are not all about the gifts, but the gifts make take a noticeable change for many Americans as inflation fails to allow the American dollar to buy as much as in the past.