Holiday Spending: Inflation fears drive 52% of shoppers to expect a costly season

For more than half of Americans, the upcoming holiday season carries the weight of rising costs. A WalletHub survey found that 52% of respondents believe inflation will negatively impact their ability to celebrate.

The financial strain is evident in how households are planning their spending. Seventy-nine percent of survey participants said their holiday budget this year is either the same size as last year or smaller. One in four people reported they are still paying off debt from the previous holiday season.

John Kiernan, managing editor at WalletHub, noted that these factors are pushing many shoppers to start early. “We found that more than half, around 52% of Americans think inflation is going to ruin Christmas or whatever holiday you celebrate,” Kiernan said.

Early shopping remains a popular strategy for saving money. Forty-one percent of people typically begin their holiday purchases in October or earlier. Kiernan advised that it is not too late for those who have not started, noting that there are still opportunities to find deals.

“More than two in three people believe early holiday shopping saves them money overall,” Kiernan said. He emphasized the importance of planning ahead, looking for deals, and sticking to what families can afford.

Despite the push for efficiency, many consumers remain wary of new tools. Fifty-six percent of respondents said they do not trust artificial intelligence to help them with their holiday shopping decisions.