This week is Halloween, and for yet another year in a row, American households are struggling with high prices on spooky, festive items.
Elevated prices continue to haunt families, as they are paying markedly more to celebrate a night of thrills and chills than they were three years ago.
Massive federal spending and crushing regulations under the Biden-Harris Administration turbocharged inflation to a four-decade high. While prices are not rising as fast, they are still rising. Even worse, price levels on specific items are double, triple, or higher today than they were in 2021.
Retailers expect that Americans will pull back on Halloween spending this year as a result.
By the Numbers
The inflation rate (as measured by the consumer price index) has fallen to 2.4% in September. It was 3.7% this time last year, 8.2% in 2022, and 5.4% in 2021. However, inflation had fallen to 1.4% in 2020 from 1.7% in 2019. These levels were well below the Federal Reserve’s target rate of 2% and negligible for most Americans.
Let’s look at Halloween items specifically:
Filling treat or treaters’ bags with candy costs 22% more than in 2021.
Dressing up your Spidermen and Ninjas costs almost 10% more, while you’re spending nearly 6% more to dress your princesses.
Jack-o-lanterns are up about 10% as well.
Thankfully, apples have come back down in price, but warm apple cider is 23% more expensive.
These all add up.
American households, especially low-income families, those on fixed budgets, and racial minorities are disproportionately affected since they spend proportionately more of their income on essential items such as groceries and gas than higher-income households.
Wages have not kept pace with inflation for most of the Biden-Harris Administration, while interest hikes have increased their bills. Collective credit card balances are at an all-time high of $1.1 trillion. Personal savings since January 2021 have fallen by nearly $3 trillion. The average middle-class household lost at least $33,000 in real wealth. Families are financially squeezed, leaving little room for fun and leisure activities like celebrating Halloween.
According to the National Retail Federation, Halloween spending is projected to fall from a high of $12.2 billion to $11.6 billion. Shoppers plan to spend an average of $103.63, about $4.62 less than last year’s record. Fewer Americans plan to engage in Halloween activities than last year, such as handing out candy, decorating, or dressing up. The increase in total Halloween spending is likely due to increased prices.
This summer, one out of three Americans trimmed grocery bills to afford utility bills. As the cooler weather rolls in, with home heating oil prices up 36%, electricity up 32%, and natural gas prices up 25%, households grapple with whether to heat or eat.
Bottom Line
Four years of Biden and Harris policies, including trillions of dollars in spending packages on stimulus checks and green energy subsidies for the wealthy, as well as increased regulations on energy, commerce, and industries, have pushed prices up by thousands of dollars for households. Now, Americans are paying the price every day making the holidays less festive.