Holiday Spending: Inflation Fears Drive Early Shopping Plans

More than half of Americans expect rising prices to derail their upcoming holiday season, according to a WalletHub survey. John Kiernan, managing editor at WalletHub, stated that the data shows 52% of respondents believe inflation will ruin Christmas or other observed holidays.

The survey reveals tight financial planning among consumers. Seventy-nine percent of participants reported that their current holiday budget is identical to or smaller than last year’s. Additionally, one in four respondents indicated they are still paying off debt from the previous holiday season.

Many shoppers are attempting to mitigate these costs by purchasing goods earlier in the fall. Kiernan noted that 41% of people typically begin their holiday shopping in October or earlier. He advised that those who have not yet started still have ample opportunity to save money by avoiding last-minute purchases.

The primary motivation for early shopping is cost savings. More than two in three people surveyed believe that buying gifts well in advance reduces their total expenses. Kiernan emphasized the importance of planning ahead, researching deals, and sticking to affordable price points.

Consumer confidence in new technology remains mixed. The survey found that 56% of people do not trust artificial intelligence to assist them with their holiday shopping decisions.