Record-high inflation could impact your holiday shopping plans
BALTIMORE -- Inflation is at an all-time high just in time for the holidays.
Shoppers can expect record-high prices for gifts and all holiday events. increasing just in time for the holidays.
Thanksgiving and Christmas dinner could put a dent in your pocket.
According to the American Farm Bureau Federation, inflation has caused popular dinner dishes, like those that include turkey, to rise in price by 20% compared to last year.
Additionally, eggs are up 27% from 2021 while milk and butter shot up 16% from a year ago. Fruits and vegetables are not far behind at 9%.
Many holiday shoppers are becoming reluctant to pay high prices and are watching their wallets and spending habits.
Associate Professor of Accounting at Loyola University JP Krahel said inflation is changing consumer behavior.
"Intention is a good predictor, there are surveys that show roughly 1 in 4 people are going to cut people off their buying list," Krahel said.
As shoppers ditch their wants for needs, Krahel said some people may have to slash their Christmas shopping list or cut people out entirely due to soaring costs.
"It's a butterfly effect," he said. "If I can't spend here, other people can't spend here. The economics term is marginal propensity to consume"
Although inflation is pushing up prices, Krahel said the economic pinch associated with that pressure will come to pass.