Despite inflation and financial instability, American consumers are projected to spend more than ever in late 2025, with average holiday budgets exceeding $1,000 per person—a 4% increase from 2024. Affluent households drive spending growth due to strong investment returns and wage growth, while lower-income families struggle with stagnant wages and rising costs for essentials like food, housing and energy. Though inflation has cooled since its 2022 peak, prices for groceries, rent, utilities and fuel remain significantly higher than pre-pandemic levels, disproportionately impacting middle- and lower-income earners. Luxury brands thrive, while discount chains and major retailers like Walmart and Target expand buy-now-pay-later options to…
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