Americans Brace for Record Back-to-School Shopping Costs Amid High Inflation
As the back-to-school season begins, Americans are bracing themselves for record-breaking expenses, driven by soaring inflation rates across the nation. This weekend marks the initiation of classroom shopping, coinciding with nine states declaring a sales tax holiday to provide some relief to consumers. However, the National Retail Federation (NRF) forecasts that this year’s back-to-school spending will surge to unprecedented heights, with Americans estimated to shell out a staggering $41.5 billion, surpassing last year’s $36.9 billion and the previous record of $37.1 billion set in 2021.
According to the NRF’s report, families with children in elementary school through high school can expect to spend an average of $25 more than they did in the previous year. This upward trajectory is mirrored in spending on higher education, projected to reach an astounding $94 billion, a considerable $20 billion jump from the previous year’s figures.
Phil Rist, an executive vice president at Prosper Insights & Analytics, which conducted the survey in collaboration with the NRF, highlighted that even as consumers plan to allocate more funds toward school and college-related items, they remain focused on securing the best value and deals available. Rist emphasized that consumers are strategically stretching their dollars by comparing prices, considering alternative brands, and opting for store-brand items. Furthermore, the survey found an increased propensity to shop at discount stores, indicating a shift in spending behavior compared to the previous year.
However, the NRF’s projections stand in contrast to another back-to-school spending report from Deloitte, which predicted an unexpected decrease in spending for the first time in nine years. Deloitte’s analysis foresees a reduction in overall back-to-school shopping to $31.2 billion, a decline from the $34.4 billion total reported in 2022. Furthermore, Deloitte’s report estimates that consumers will personally spend 10% less this year.
Deloitte attributed this potential drop to the impact of inflation, which has compelled Americans across various income levels to prioritize necessities and cut back on non-essential purchases. The ongoing surge in inflation has raised concerns about the affordability of everyday goods, creating a challenging financial landscape for many families.
Despite these conflicting predictions, the back-to-school shopping frenzy has only just begun, with high spending anticipated to persist throughout the first three weekends of August. As families and students navigate the evolving economic climate, the back-to-school season serves as a telling indicator of consumer sentiment and financial resilience in the face of rising costs.
