ST. LOUIS – Inflation will likely have the holidays costing consumers more this year, but it may not necessarily be on the gifts. The biggest increases on holiday items this year will probably be for those traveling and hosting families.
The Federal Reserve Bank of St. Louis explains the prices for holiday gifts appear to be rising at a slower pace than overall inflation, which stands at 7.7%.
The St. Louis Fed found the average price for holiday gifts rose sharply in the past few years, costing 6.9% more in 2021 than the previous year. The Bank says the price for holiday gifts could be 3.4% higher in 2022.
But some of those holiday gifts are seeing a much higher increase than others. Experts at the St. Louis Fed looked at the inflation rates on some of the most popular holiday gifts categories and other holiday expenditures.
Holiday Travel: Overall, travel prices are up 29% over 2021, and airline tickets are driving the jump. Plane ticket prices have surged 45.5%. The Federal Reserve of St. Louis explains that is because of a rebound in post-pandemic leisure travel. While gas prices have dropped from a record-high over the summer, they are still up 12.8% from last year.
Hosting: If you are hosting family and friends this year, the experts at the Federal Reserve of St. Louis say you can expect a significantly higher grocery bill because food at home is 13.3% more expensive. If you have a sweet tooth, it could cost you even more in 2022. Cookies and candy are about 18.6% and 14.7% more expensive, respectively.
Stationary: Homemade cards and newspaper gift wrap may be the way to go this year, according to the Federal Reserve of St. Louis. It says stationary and gift wrap prices have skyrocketed by 12%.
Jewelry: If a new necklace or watch is on your shopping list, you may not see as much of an increase on this purchase. The Federal Reserve of St. Louis says they are on pace to increase about .09%, which is slower than the 7.3% in 2021.
Tools: A new drill or saw will cost you about 9.1% more this year, that is after an increase of 7.2% the year before.
Toys: The price of toys has remained relatively stable, increasing about 2% since 2021, according to the Federal Reserve of St. Louis.
TVs: New TV prices have fallen 16.8% since last year. The Bank says that comes after increasing for the first time in over a decade in 2021.