The impact of rising inflation on holiday shopping

Jonesboro, Arkansas – Increased inflation may have an impact on holiday shopping this year.

At the moment, the country is experiencing higher-than-average inflation. Dr. Gary Latanich, a former economics professor at Arkansas State University, claimed that inflation should typically range between 2% to 2.5%.

“Inflation right now is somewhere between 8% and 6% percent. It’s higher more than it should be,” he said.

Inflation has been caused by a number of variables, including labor shortage and supply chain problems. These elements may have a variety of effects on holiday buying, such as reducing available funds or increasing prices.

“The bad news is that fuel and rent prices are rising and so that’s going to constrain the amount of money you have to spend on Christmas shopping,” said Latanich.

Consumers will also pay more if retailers pay more for the things they sell. According to Dr. Latanich, rising delivery costs could result in higher product pricing.

“Well even if they’re a small business, they must get their product on a container ship. Container ship prices have doubled so that alone, just to cover the costs of transportation make the product expensive,” he said.

Larger shops have the tools to deal with inflation. Many people have access to savings when they buy in bulk. Smaller businesses typically suffer the burden of growing prices, which results in more expensive items.

Inflation has an impact on more than just the price of goods; this year, holiday travelers may spend more money.

“What’s going to be rising for the holidays is travel, it’s up more than it’s ever been. And prices are going to rise. You’re going to pay a lot if you want to fly,” said Latanich.

This year, inflation may have a greater impact on consumer budgets, but according to Dr. Latanich, normalcy is not too far away.

“My guess is that by the end of 2023 you will see inflation be two percent, two and a half percent,” he said.