Holiday Shopping Blues: Americans Struggle with Inflation Amid Economic Concerns

As the holiday season approaches, many American shoppers are facing a challenging financial landscape, according to a recent AP-NORC poll. With rising prices for essential goods and holiday gifts, a significant portion of U.S. adults report tapping into their savings and becoming more budget-conscious than usual.

Why It Matters

This situation highlights the ongoing effects of inflation on American households, even as the political landscape shifts with President Trump back in office. As economic struggles continue, the sentiments expressed by consumers will likely play an essential role in shaping the upcoming midterm elections, making it critical for policymakers to address these economic concerns.

Key Developments

• A recent AP-NORC poll indicates that a majority of U.S. adults are feeling the pressure of high prices on groceries, electricity, and holiday gifts.
• About 50% of Americans find it more difficult to afford holiday gifts, leading many to delay larger purchases.
• Public sentiment shows that 68% of adults view the economy as "poor," a steady statistic since December 2024.
• Republicans and Democrats alike are budgeting more carefully, with about 40% of both parties searching for lower prices.
• Despite some signs of easing inflation, approximately 87% of adults have noticed high grocery prices.

Full Report

Economic Strain on Shoppers

The holiday spirit appears dulled for many this year as they navigate a financial landscape complicated by inflation. A substantial number of respondents to the AP-NORC poll reported having observed higher-than-usual prices in recent months, particularly for groceries and gifts, prompting them to adjust their spending habits.

Sergio Ruiz from Tucson noted that financial pressures have led him to utilize buy-now-pay-later options for gifts. Ruiz expressed a desire for lower interest rates to ease the strain on his real estate business, stating, "What can you do? You need to make more money."

Additionally, nearly 50% of shoppers are actively searching for lower prices when they shop, while over 40% are dipping into their savings more than usual.

Divergent Perspectives on the Economy

While President Trump remains confident in his economic policies, including his tariffs, he faces a stark contradiction in public perception. He has voiced frustration that the public doesn’t share his view of an economic boom. "When will people understand what is happening?" he queried on social media.

Despite the administration’s assertions, many people resonate with the findings of the poll, indicating widespread economic anxiety even among those who backed the president in the last election.

Consumer Confidence and Future Outlook

While there have been signs of resilience in consumer spending, many are doubtful about improved economic conditions for the next year. Approximately 40% of those surveyed expect 2026 to be economically worse, with only 20% harboring optimism for better times ahead.

Millicent Simpson from Cleveland articulated her concerns about the economy, attributing difficulties to government policy under the current administration. "He’s making it rough for us," Simpson commented, underscoring fears of worsening conditions, particularly for those dependent on government assistance.

Context & Previous Events

The sentiments expressed in the current poll mirror similar findings from December 2022, during President Biden’s administration, when inflation spiked to a four-decade high. Although there has been some easing in inflation rates since then, current inflation remains higher than the Federal Reserve’s target, indicating that economic pressures continue to affect American families.

The poll was conducted from December 4 to 8 and involved a representative sample of 1,146 adults, with a margin of error of plus or minus 4 percentage points.