Full Breakdown
Impact of Inflation on Holiday Spending in 2025
12/15/2025, 7:47:08 PM
Overview of the Economic Climate
Inflation is significantly influencing Americans' holiday spending habits this Christmas season, as indicated by the CNBC All-America Economic Survey. Conducted with 1,000 participants nationwide, the survey reveals that the high cost of goods has become the primary factor affecting consumer spending, marking a notable shift from previous years when income levels were the main driver of spending behavior.
Key Findings from the Survey
The survey highlights that 46% of respondents who plan to spend less attribute their decision to the high cost of goods, a 10-point increase from the previous year. Conversely, 36% of those intending to spend more cite high prices as their reason, reflecting an 11-point rise from 2024. Overall, 41% of Americans anticipate spending less this holiday season, a figure that has increased by six points compared to last year, indicating growing financial constraints.
Despite these challenges, Americans who are purchasing gifts plan to spend an average of $1,199, which represents a 3.9% increase over 2024. However, the overall average spending is projected at $1,016, remaining relatively stable compared to the previous year.
Shifts in Consumer Behavior
The survey also reveals a shift in shopping preferences due to economic concerns. There has been a 9 percentage point increase in consumers opting for online retailers, alongside a 3-point rise in those choosing big-box stores like Walmart and Best Buy. Additionally, a 6-point increase was noted in shoppers planning to visit wholesale retail outlets.
Public Sentiment on the Economy
The survey indicates a prevailing negative sentiment regarding the economy, with 60% of respondents expressing pessimism about both the current state and future outlook. This marks the highest level of economic pessimism since December 2023. Notably, 93% of Democrats and 86% of independents rate the economy as fair or poor, a sentiment that has also begun to affect Republicans, with 53% sharing similar views. Micah Roberts, a Republican pollster, noted that the shift in perception among Republicans from a majority viewing the economy positively to a significant number rating it as fair or poor is concerning.
Official Statements & Responses
Jay Campbell, a partner at Hart Research, emphasized the impact of rising prices on consumer behavior, stating, “Almost 70% say that prices are higher now, and it's affecting people both who are spending more and who are spending less in a much bigger way than it ever has.” This sentiment underscores the broader economic challenges faced by consumers during the holiday season.
Conclusion
The findings from the CNBC All-America Economic Survey illustrate a significant impact of inflation on holiday spending in 2025. As consumers navigate rising prices, their shopping habits are evolving, reflecting a cautious approach to holiday expenditures amidst a backdrop of economic uncertainty.
