Savings due to inflation
Americans are planning to buy fewer gifts for the upcoming holidays, as well as reduce spending on charity due to inflation and economic problems in the country. The Wall Street Journal reported this on Sunday, citing opinion polls.
"The data shows that in the US, consumers and businesses have scaled back spending plans for gifts, charitable contributions and festive events," the publication noted.
According to a survey conducted in August by Bankrate, 84% of respondents said they would follow money-saving tactics this year, relying on coupons and discounts, as well as buying fewer items and seeking out cheaper gifts. And according to a survey conducted in September by consulting firm Deloitte, Americans expect to buy an average of nine gifts for the upcoming holidays, which is seven fewer than last year.
As The Wall Street Journal points out, US residents have also cut back on spending on charity.
Experts at crowdfunding platform Kiva surveyed 2,000 Americans and found that many of them plan to spend less money on charity than last year. Thus, 44% of respondents cited lack of funds, while 42% of respondents said that donations are "for the privileged".
In 2022, "consumer prices rose faster than wages and high inflation was more resilient than many policymakers had expected," the WSJ wrote.
On 15 November, US Treasury Secretary Janet Yellen said in an interview with NBC on the sidelines of the G-20 summit in Indonesia that the US inflation rate would decline to normal levels in about two years. On 10 November, the US Department of Labor reported that consumer prices in the country rose at an annual rate of 7.7% in October, up from 8.2% a month earlier.