Title: Americans Expected to Spend Record Amount on Back-to-School Shopping Amid High Inflation
Subtitle: Sales Tax Holidays and Increased Education Costs Drive Consumer Spending to Unprecedented Levels
Byline: [Author Name]
[City, State] – As the back-to-school season kicks off, American shoppers are bracing themselves for the highest inflation rates in recent years. With rising prices and increased costs across the country, families and students are expected to spend a record amount on back-to-school shopping, according to experts.
This weekend, nine states have declared a sales tax holiday, marking the beginning of classroom shopping. The National Retail Federation (NRF) predicts that Americans will spend a staggering $41.5 billion on back-to-school items, 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 through high school are expected to spend an average of $25 more than they did last year. Moreover, spending on higher education is projected to reach $94 billion, a significant increase of $20 billion compared to last year’s figures.
“Even though consumers plan to spend more on school and college-related items this year, they are still looking to find the best value and deals,” said Phil Rist, an executive vice president at Prosper Insights & Analytics. The firm conducted a survey alongside the NRF, shedding light on consumer behavior and preferences during these times.
Consumers are becoming increasingly budget-conscious and are embracing various strategies to make their dollars stretch further. They are carefully comparing prices, considering off-brand or store-brand items, and opting for discount stores more frequently than in previous years.
Contrary to the NRF’s projections, another report from Deloitte painted a different picture for back-to-school spending. The Deloitte report predicted a decrease in spending for the first time in nine years, citing inflation as the primary cause. This analysis suggests that the rising costs of basic necessities are forcing Americans to prioritize essential purchases over non-essential items.
Deloitte’s report projected that overall back-to-school shopping would shrink to $31.2 billion, a substantial decrease compared to the $34.4 billion spent in 2022. Additionally, the report anticipated consumers personally spending 10% less this year.
However, the conflicting predictions highlight the uncertainty surrounding consumer behavior amid a challenging economic landscape. While some experts foresee increased spending on back-to-school supplies, others warn of a potential downturn due to economic factors such as inflation.
As the back-to-school shopping season unfolds, high spending is expected to continue into the first three weekends of August. Shoppers will continue to navigate the challenges posed by inflation and strive to find the best value for their money.
With Americans facing high inflation and increased prices across the country, the back-to-school season serves as a significant barometer for consumer sentiment and economic recovery.
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