Holiday shoppers weigh inflation impact as they plan for holiday gifts

Category: (Self-Study) Business

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Holiday shoppers in Nashville said they felt the pressure of higher prices in 2025 as they looked to buy gifts for their friends and family for the festive period.

At an outlet mall, residents looked for deals ahead of Christmas but also tried to spend wisely with an eye on the following year.

“When you’ve got a lot of people to buy presents for, you know, you kind of got to divvy up that budget,” said shopper Bennett Roach. “Everybody gets a little slice of the pie, but the pie, you know, is getting smaller and smaller every year.”

The vast majority of U.S. adults say they’ve noticed higher than usual prices for groceries, electricity, and holiday gifts in recent months, according to a survey from The Associated Press-NORC Center for Public Affairs Research.

Roughly half of Americans say it’s harder than usual to afford the things they want to give as holiday gifts, and similar numbers are delaying big purchases or cutting back on nonessential purchases more than they would normally.

“I used to get my hair done and my nails done, and I don’t do any really of that anymore,” said another shopper, Missy Hunt. “I started getting my nails done around my birthday, and that’s kind of like a special treat now. So those kind of things, I don’t really spend as much money on, like, makeup anymore.”

Hunt, who works in healthcare, said her concerns this holiday season are for others who are facing potential increased healthcare costs. “It’s one of those things where I hear so many stories about people who are about to be losing their healthcare,” said Hunt. “And, like, at a time like this, when I’m, like, not focused on that at all for myself, I know that’s what, like, the number one thing on a lot of people’s minds for 2026 and 27.”

For shoppers like Jackie Castro, she wanted her gifts to have an impact, so she was looking for brand-name deals. “I feel like if I know whoever I’m buying the gifts for is going to like it, then I’m willing to spend more and only buy one thing for them,” she said.

This article and video were provided by The Associated Press.

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[Shoppers in front of a Christmas tree]

[Street]

Bennett Roach (interview): “Well, you know, just like I was saying, like everybody just kind of have to watch how much you’re spending. And, you know, when you’ve got a lot of people to buy presents for, you know, you kind of got to divvy up that budget. So, you know, everybody gets a little slice of the pie, but the pie, you know, is getting smaller and smaller every year, so.”

[Cars at a shopping center]

Bennett Roach (interview): “It hasn’t gotten any better. You know, inflation’s been crazy and yeah, I don’t see it turning the other way anytime soon, unfortunately.”

[People walking at the shopping center]

Missy Hunt (interview): “I mean, I used to get my hair done and my nails done, and I don’t do any really of that anymore. I started getting my nails done around my birthday, and that’s kind of like a special treat now. So those kind of things, I don’t really spend as much money on, like, makeup anymore.”

[Person walking past a Christmas tree]

Missy Hunt (interview): “It’s one of those things where it’s, I hear so many stories about people who are about to be losing their health care. And, like, at a time like this, when I’m, like, not focused on that at all for myself, I know that’s what, like, the number one thing on a lot of people’s minds for 2026 and 27 and worrying about how, like, going from a few hundred bucks a month to then spending three times that on just the insurance is like, that cuts out so much that you can spend on anyone but yourself, like, especially around Christmas time. Like, I don’t know how you can kind of fathom how much more it’s going to be.”

[Shopping center area]

Jackie Castro (interview): “I feel like if I know whoever I’m buying the gifts for is going to like it, then I’m willing to spend more and only buy one thing for them. So that’s why I’m kind of here because, like, usually when my friends or family want something is from like a necklace or like branded shoes and it’s like, there’s like discounts here so it’s better.”

[People walking past Christmas trees]

Elyse McKenna (interview): “Absolutely. There’s absolutely an increase this year.”

Emerson Gates (interview): “I even like notice it. I had a secret Santa, like, event at my school and I was like, wow, I have the same budget that I would usually have and I got like way less items than I’m used to. I’m, like, used to getting more for people and then, like, a pair of, like, six pens were like pretty expensive. I don’t have the exact amount. Maybe like $10.”

Elyse McKenna (interview): “I’m willing to spend. We’re also getting her some nicer things for church, for school, and that kind of stuff, so that I definitely will spend more. The sweatsuits, those kind of things, knowing it’s not going to be something that lasts or carries on, we’ll do a little bit less. But yeah.”

[Sign by the Christmas trees]

This script was provided by The Associated Press.