Consumers say inflation will affect their holiday shopping this year

Inflation isn’t just weighing on voters’ minds as they head to the polls. It’s likely to affect how Americans spend this holiday season. 

A new survey from the credit rating agency Experian finds that 68% of consumers believe inflation will affect their holiday shopping, with more than half (56%) saying they feel stressed about their finances.

One third of shoppers say their stress is because it’s difficult to stay within their budget; 29% say they don’t want to add to their debt.

Almost nine in ten consumers say they’re tempted to spend more than they should, most of them (55%) by holiday deals and sales. Of consumers who overspend, most do so on gifts for others.

A slim majority of shoppers (51%) plan to pay for holiday gifts in cash; 46% say they plan to use a major credit card.

Fifteen percent of consumers plan to open a new credit card to shop for the holidays this year — up from 11% in 2023. 

Paying off debt is the No. 1 step consumers plan to take to improve their finances before the new year, with 43% saying that paying off debt is their top financial improvement step, followed by not spending too much over the holidays (38%) and creating a budget for 2025 (36%).