23 Dec 2022Read of the weekRead of the week: inflation impacts Xmas spending

The cost of living crisis is putting more pressure on household budgets which is impacting Christmas spending. In response to tough economic times, people are rethinking gift-giving and are placing value on spending time with loved ones in an effort to focus on the seasons' merry moments.

Author
J’Nae PhillipsJ'Nae Phillips is an Insights Editor at Canvas8. After an early career working in fashion and media, her passion for culture and journalism grew and she made the transition to writing and editing full-time. Outside of Canvas8, she can be found writing for her style-focused newsletter or adding to her growing book collection.

With inflation causing people to cut back on their spending for the 2022 festive season, many face a bleaker-than-usual holiday period as the cost of living crisis bites. Holiday shopping habits are undergoing something of a shift, with seasonal spending budgets being trimmed in order for people to make ends meet.

In the UK 51% of Britons plan to spend less on alcohol and 39% will cut back on grocery spending, while 56% expect to buy fewer presents and 80% are concerned about their spending this Christmas. Overseas in the US, Americans are planning to keep spending down with 47%  buying items that have been discounted and 38% purchasing presents for fewer people.

As people look for ways to manage their spending this Christmas, many are reimagining the holiday period by emphasising the care and connection seasonal festivities can bring. And as 90% of people in the US would like the festive season to be less materialistic and 87% think it should be more about family and caring for others, brands like Disney are reframing gift-giving amid the financial squeeze and Very are attempting to keep things light-heard this festive season.