Holiday shoppers cut back on spending as inflation soars

Santa Claus may be bringing fewer presents this year. With inflation through the roof, it's causing many to cut back their holiday spending.

"I'm budgeting so much, and the inflation is so high. With food right now I go for the food bank, and I try to get all the deals that I can get," says Oro Medonte resident Ann Yumul.

"You know, trying to save every penny because I want to have a good Christmas with my daughter and everything, so yeah, we're looking for sales," says Barrie shopper Charlene Bosnar.

According to a survey by the Financial Consumer Agency of Canada, in 2019, only half of Canadians had a budget.

"It's a really tough time, you look at where food prices are, you look at where gasoline prices are, rent prices, and you know what - something has to give," says retail expert Bruce Winder.

Retailers are feeling the effects too. The Body Shop Manager Cody Harvey says sales have decreased this holiday season compared to previous years.

"There's definitely a difference in the sales but also a difference in the traffic in the mall, and also seeing people, you know, very careful with their dollar, Really want the best deal," says Harvey.

Even with the threat of a recession in 2023, experts say it's not stopping everyone from taking out their wallets.

"The weird thing with holiday spending it's one thing people generally don't want to cut back on […] people are going to try and find a way to get as much spending in as they can and then maybe deal with the hangover effect in January," says Concordia University Economics Professor Moshe Lander.

According to experts, the average Canadian household spends 1800 dollars during the holiday season.

To avoid overspending, experts recommend making a budget and staying within it.