As the holiday season approaches, consumers are being squeezed by a resurgence in inflation that’s affecting an increasing number of their seasonal purchases. According to Bankrate’s annual analysis of 50 everyday holiday‑staple items in the Bureau of Labor Statistics’ consumer price index, “more than 3 in 4 holiday staples (78 %) have gotten more expensive since September 2024,” marking the highest share since 2022, when 88 % of tracked goods rose.
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Rubber meets the road in the category of entertaining: this year, six of the ten most‐inflated holiday items fall under “entertaining” — covering festive food items like poultry, turkey, fish, sugar and sweets, as well as household paper goods, soft drinks, and alcoholic beverages. Bankrate found that “more than half of ‘entertaining’ items (56 %) increased faster than the Fed’s 2 % target, compared with just 17 % last year.”
Gifts likewise are costing more. In 2024, gift prices were mostly falling — about 65 % of gifts got cheaper, only 35 % rose. But this year that trend has reversed: “Only one in four gifts (25 %) are cheaper than they were a year ago, while three in four (75 %) have gotten more expensive.”
What’s powering the surge? Among the reasons Bankrate cites are renewed pressure on goods prices and the impact of tariffs. “If goods costs had held steady … the overall inflation rate would have been closer to 2.3 % instead of 3 %,” Bankrate’s calculations show. And as Bankrate quotes analyst Ted Rossman: “There is a K‑shaped economy, and higher earners are propping up these stats.”
Meanwhile, travel and experience costs are rising too. Bankrate reports that air‑travel expenses up 3.2 % and transportation services up 2.7 % from a year ago. As a result, fewer Americans plan to travel this holiday season: only 21 % of adults intend to fly or stay in a hotel or rental, compared with 27 % in 2024.
For everyday households, the message is clear: more items on your holiday list will cost more, and specific categories like food for entertaining will hurt budgets most. Households already feeling the squeeze from wages that haven’t fully kept pace with inflation are unlikely to feel relief this season. Bankrate notes a tighter job market and uneven economic benefits, warning that the situation could curb consumer spending.
In practical terms, spending a bit more on that holiday party or gift list could be nearly unavoidable. But Bankrate offers strategic guidance: start budgeting early, look for deals, and pick your timing and gifts with care. Prices may not fall, but being prepared can make them easier to manage.
As Americans consider how to stretch their holiday dollars this year, one thing is sure: inflation has returned to the festive season. With 78 % of tracked items rising in price, the good news is that preparation, awareness, and early planning may help keep the holiday joy from being overshadowed by cost.
Source: Bankrate
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