Tis the season for shopping. But will holiday shoppers buy as much as they did last year?
Inflation is the grinch stealing the holiday season this year. According to a new report from Roanoke College, a three percent inflation rate is slowing down the festive cheer, and people are expecting to spend about five percent less this year.
"We are seeing people still giving gifts. That number didn't change too much from last year," says Alice Kassens, dean of the School of Business, Economics and Analytics at Roanoke College. "But they're really pulling back on these experiences, which could be a trip to go skiing. And so, they are focusing on smaller item gifts to show their appreciation, their care, their love."
She says part of the story here is the way tariffs target foreign commerce.
"If you have a country that we import a lot of apparel from, for example, whether it's Nike shoes or some type of sweaters, then the price of that product is going to be higher," Kassens says. "And so, consumers, holding all else constant, are going to buy less of that product and perhaps more of something else."
Products taking the biggest hit from tariffs this holiday season: apparel, home decor and electronics.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
