Summary
Americans expect to pay more during the holiday season this year despite President Donald Trump's claim that prices are going down. A survey from KPMG predicts that shoppers will spend 4.6% more on average than last year, and many people are worried about tariffs raising costs. Inflation, although reported as controlled, still remains above the Federal Reserve’s target.
Key Facts
- Americans plan to spend an average of $847 during the holiday season in 2025, up 4.6% from last year.
- Eight out of ten Americans expect tariffs to increase prices.
- President Trump stated that prices are falling and emphasized economic growth, though inflation remains above 2%.
- Consumer prices increased 2.9% in August from the previous year.
- Inflation concerns are affecting shopper budgets and could impact holiday sales.
- Online holiday sales are projected to grow by 5.3% compared to the previous year.
- Retail expert expects modest growth in e-commerce sales due to budget-minded consumers.
- Essentials like groceries are expected to see a significant spending increase, with other areas like toys and furniture seeing budget cuts.
