Holiday Spending: 52% of Americans Fear Inflation Will Ruin the Season

WalletHub data released Thursday shows that 52% of Americans believe inflation will negatively impact their upcoming holiday season.

The survey indicates that 79% of respondents are setting a holiday budget that is equal to or smaller than last year’s. Additionally, one in four participants reported that they are still paying off debt from the previous holiday season. John Kiernan, managing editor at WalletHub, noted that 52% of Americans think inflation is going to ruin Christmas or whatever holiday they celebrate.

Early shopping appears to be a primary strategy for managing costs. Kiernan stated that 41% of people usually begin holiday shopping in October or earlier. He added that more than two in three people believe starting early saves them money overall. The survey suggests that those who have not yet started have opportunities to save by planning ahead.

Budgeting remains a central focus for most consumers. The data shows that most people surveyed maintain a specific holiday budget. Kiernan advised that it is important to plan ahead, take time looking for deals, and stick to what is affordable. This approach helps individuals manage the pressure of rising costs during the holiday period.

Trust in technology for holiday planning remains low. The WalletHub survey found that 56% of people do not trust artificial intelligence to assist with their holiday shopping decisions. This skepticism exists despite the widespread availability of digital tools designed to optimize spending and track prices.