PENNSYLVANIA, USA — From travel to shopping, inflation is forcing consumers to think twice about their holiday plans.
A survey from the personal finance website Bankrate.com claims nearly 8 in 10 Americans who plan to travel are changing their plans due to inflation.
"People are traveling for fewer days, they're picking cheaper activities, cheaper accommodations, maybe they're driving instead of flying," Bankrate Spokesperson Ted Rossman said. "Lots of people making changes."
As Americans pay more for everyday items, Rossman says something has to give.
“The fact that your rent costs more, your gas, your groceries, there's a spillover effect to all that," Rossman said.
And it’s not just travel.
With the current inflation rate hovering above 8% and concerns over a recession lingering, experts say shoppers are also expected to make some changes.
“All of that understandably makes the consumer nervous," Dr. Fariborz Ghadar with Penn State University's Smeal College of Business said. "From the consumer's point of view, you're telling me there's going to be a recession, so I better, you know, buckle up or tighten my belt.”
Dr. Ghadar also says consumers aren’t the only ones making adjustments.
“If the retailers all of a sudden find out that the consumer has pulled back and they can't sell this stuff, you're going to see a lot of bargains coming up," Dr. Ghadar said.
Thinking hard about budgeting and spending could help buyers this season.
“So set money aside from every paycheck between now and the end of the year," Rossman said. "Shop early, use rewards points, be thoughtful about comparison shopping.”
And as for when consumers could expect a break, Dr. Ghadar says it might not be as long of a wait as you think.
"I think we should basically see inflation gradually go down by the end of 2023," Dr. Ghadar said. "We'll probably see the benefits of it even earlier, maybe second quarter 2023."