With prices skyrocketing over the last few months, figuring out how to navigate holiday spending this year is leaving many of us scratching our heads. Fortunately, we’ve got you covered. Read on for tips to help keep your holiday costs in check.
What is inflation?
Inflation happens when consumer demand for goods and services exceeds what the economy is currently able to supply, causing average prices to consistently increase over time.
According to the US Bureau of Labor Statistics, in September 2022 the Consumer Price Index (which measures the changing costs consumers pay for goods and services) rose 8.2 percent from last year for all items—down from 9.1 percent in June—with grocery costs rising a whopping 13 percent.[1][2]
If that’s causing you some concern, you’re not alone, as the generally acceptable inflation rate lands around 2 percent or less, according to the Federal Reserve.[3][4]
The causes are complex, but some reasons for the current bout of inflation include supply chain disruptions resulting from the COVID-19 pandemic and political events like the war in Ukraine.
Inflation and holiday stress
While the holidays are often a joyful time that many of us look forward to, they can lead to overspending, debt, and stress. This year, it’s not surprising that 84 percent of holiday shoppers will focus on saving money, while 40 percent say inflation will change the way they shop, according to a Bankrate survey.
- 41 percent say they will seek out coupons, sales, and discounts.
- 40 percent will buy fewer items.
- 27 percent will start shopping earlier.
- Others say they will buy cheaper brands, use credit card rewards to shop, shop at stores where they have membership discounts, DIY, and shop secondhand.[5]
Try it!
Get ahead of inflation and celebrate this season in a way that’s easier on your wallet! Try making your own gifts and stocking stuffers (hello, holiday baking!) and forage for décor; give cards with hand-written notes over gifts; host potlucks to take some stress off; make your own giftwrap with old clothing, scarves, or even bandanas; regift what you won’t use; and think of experiences you could enjoy together.
Are you going to try and make one change? Share with us on Instagram and Facebook @deliciouslivingmag. You’ll find plenty of support within our community of like-minded wellness enthusiasts!
[1] https://www.bls.gov/cpi/
[2] https://www.statista.com/statistics/273418/unadjusted-monthly-inflation-rate-in-the-us/
[3] https://www.federalreserve.gov/faqs/5D58E72F066A4DBDA80BBA659C55F774.htm
[4] https://www.federalreserve.gov/faqs/economy_14400.htm#:~:text=The%20Federal%20Open%20Market%20Committee,maximum%20employment%20and%20price%20stability.
[5] https://www.bankrate.com/pdfs/pr/20220908-early-holiday-shopping-survey.pdf
