With Inflation On The Rise, Holiday Spending In Question

With the holidays upon us and inflation increasing worldwide, consumers are limiting their spending because everywhere they go they’re paying more than planned. However, despite the high cost of everything, sacrifices are being made to make sure loved ones have a gift to open on Christmas. 

The increased cost of items people normally purchase has been a pain for months. While inflation isn’t new, a recent article from the Federal Reserve History talks about inflation being, “the greatest failure of American macroeconomic policy in the postwar period.” The article further noted that, “During the 1960s inflation rose  to 14 percent and didn’t decrease to 3.5 percent until the mid-1980s.” 

With the arrival of the holiday season, many are finding it difficult with groceries and buying presents. Some have even said that they are not giving gifts this year because everything is expensive, and they are trying to save money.  

Ingrid Flores, an MVC business major said, “It has been difficult taking care of my  household needs such as groceries, cleaning supplies, and necessities. In my house we are doing Secret Santa and it has helped me keep a budget of what I can or can’t buy.” 

A November Quinnipiac poll shows 47% of people polled have less in their savings than they did a year ago. The same poll also shows 42% of respondents are planning to spend less money on gifts this year while others plan on spending a little more than expected.  

“Ever since inflation has gone up, it has been hard to save money, and my paychecks aren’t enough,” said MVC student, Rocio Ramirez. “I am planning on getting a second job to help my family with things that they might need around the house.” 

The current inflation rate in the United States is 7.1%. Hopefully, by the next inflation update January 12, 2023 we’ll see some ease in prices and inflation in our wallets instead.