UMD Economics Professionals Look at Holiday Shopping Trends

DULUTH, Minn. — With holiday shopping underway, professors at UMD are looking at how the economy may affect trends this year.

The Director of the Bureau of Business and Economic Research for UMD says inflation levels have lowered to pre-pandemic levels of about 2% this year. Wages have increased faster than the rate of inflation so the average household may have more buying power than they did last season. One way to look at how prices are increasing is the Consumer Price Index or CPI. It’s also the most widely used measure of inflation, according to the UMD professor.

“But you can actually look at the specific components of that CPI and see somethings are increasing but other prices have actually decreased from last year. And so, there are a few areas where prices are actually lower this year than they were last year and those are sporting goods, toys, and electronics. So, that’s actually a good thing to think about when you’re considering gifts,” said Monica Haynes, Director of the Bureau of Business and Economic Research.

Haynes says holiday shopping trends include gifts of experiences rather than items, and shopping for discounts.