Many Americans work off their Thanksgiving feasts by lining up on Black Friday to grab some of the best deals of the year. But consumers turning up this year to get their holiday shopping started may find that prices have grown even faster than their waistlines.
Here are Five Facts on inflation heading into Black Friday.
1. Consumers are concerned about the state of the economy.
Some economists are growing more bullish on the odds the U.S. will dodge a recession in 2023, but everyday Americans aren’t feeling as rosy. Consumer confidence fell 8.7% in November as folks continue to feel the pinch of rising costs ahead of the holidays.
2. Inflation is eating into paycheck gains.
While inflation rates have dropped from their record highs earlier this year, many Americans are still paying more for everyday needs like rent, energy, and food. And these higher costs are eating into most of the pay raises workers are earning. This is part of the reason a U.S. Census survey from this fall found that 41% of Americans were having trouble making essential household payments, a 12% increase from 2021.
3. Nearly one in three Americans are buying fewer gifts this year
Yahoo Finance reports that 73% of Americans feel like gifts have gotten more expensive in 2022. Large numbers of Americans also report holiday food and décor are costing more as well.
4. Charities expect giving to be down.
Americans aren’t just tightening their wallets for themselves, but for charities, too. The Wall Street Journal reports a survey of 2,000 Americans found that many planned to cut back on charitable donations this year – nearly half said they didn’t have the money to do so this year.
5. 64% of shoppers say they plan to shop on Black Friday
That’s according to a Deloitte study, which also finds the number of people planning to shop on Black Friday exceeds last year’s 56% figure . According to Nick Handrinos with Deloitte, “While inflation continues to impact consumers at every turn, they are unwilling to let it dampen the holiday spirit.”
