DAYTON — With just a week until Christmas, more than two-thirds of Americans report feeling stressed about their holiday spending amid rising prices. A new report shows that more than 40 percent of families are buying fewer gifts this year due to increased costs.
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The report from Groundwork Collaborative indicates that prices are up 26 percent this holiday season, leading to an estimated 7 percent drop in overall holiday spending. This increase comes at a time when many households are struggling to balance essential expenses with seasonal purchases.
“When you think about middle and lower income households, they spend an overwhelming percentage of their income on basic necessities, housing, food, child care utilities,” Dr. Breyon Williams, Chief Economist at Groundwork Collaborative, said. “So you know, when we observe these price hikes for these kind of seasonal items, like the holidays, this is a real strain on middle and lower-income families.”
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Williams pointed out that tariffs are adding to this year’s seasonal costs. The overwhelming amount of clothing, toys, and electronics is imported, hiking up the shopping bills to the tune of about $130 per shopper.
Consumer advocates say middle-of-the-road households will struggle until pricing is stabilized.
“It’s a mix of two things. It’s ensuring that we have fair wages for folks, and also when folks are spending their money, that bulk of that money is not being, you know, going to one purchase or two purchases. That they can make the dollar spread,” Williams said.
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