By,: Chioma Madonna Ndukwu
Soaring Living Costs Dampen the Festive Season for American Families
What should be a season of bright lights and cheerful spending is taking on a dimmer tone across the United States, as many families approach Christmas with tighter budgets and a wary eye on rising living costs.
At a bustling Christmas market in Gaithersburg, a quiet suburb outside Washington, the festive mood was unmistakable.
Stalls overflowed with handmade crafts, ornaments and sweet treats. Yet behind the warm glow of the holiday décor, shoppers spoke openly about the strain of inflation shaping their choices this year.
James Doffermyre, a 37-year-old high school teacher, said the price tags on everyday items have forced his family to rethink their long-held traditions.
“Prices are terrible. It makes it difficult to shop for a lot of your friends and family,” he said as he browsed through racks of Christmas cards.
“We usually go all out for Christmas—one or two gifts for everyone. But this time, we told the adults to forget it. We’ll just buy for the kids.”
Across the country, many Americans share the same sentiment. The rising cost of living has become a central concern for households and a political flashpoint in recent months.
Even as the economy continues to grow, complaints about affordability have grown louder, cutting across age and income groups.
Discontent over inflation shaped last month’s off-year elections, contributing to surprise victories for Democratic candidates in several states. The issue has also forced President Donald Trump to adjust his rhetoric.
After months of dismissing inflation concerns as political theatre engineered by Democrats, the president recently acknowledged that the country is facing a “problem.”
Economists say Trump’s tariff-heavy trade policies—though not causing an immediate spike in consumer inflation—have increased costs for many businesses. Some firms have quietly raised prices to cope.
Official government data shows consumer inflation creeping upward, with the annual rate climbing to 3% in September from 2.9% in August.
For families like the Doffermyres, those numbers translate into cutbacks: fewer restaurant visits, scaled-back holiday plans and more careful budgeting.
Seventy-three-year-old special education teacher Karen Jenkins said grocery runs have become particularly painful.
“Grocery prices are outrageous,” she said.
Jenkins often buys food for her students, many of whom attend school hungry because “they don’t get any food at home.”
She now spends less on outings and entertainment, a pattern repeated across many households this season.
Economist Joanne Hsu of the University of Michigan explained that although consumers also faced high prices in late 2022, they had more confidence then.
“Labor markets were very strong at that time, and people felt secure about their income,” she said.
“This year feels very different.”
The squeeze is especially visible among younger working adults.
Pastry chef Olivia McPherson, 30, said the past three years have been a steady climb in price levels—one that has left her unable to afford her own apartment. She lives with a friend, buys less meat and relies on the free meals provided at her workplace.
Even with those adjustments, she might not be able to buy gifts for all her friends.
“I wouldn’t expect them to get me anything either,” she said. “Everyone is feeling it.”
Some Americans are stretching themselves even thinner.
Oscar, a 23-year-old machine operator who declined to give his last name, said he works two jobs just to stay afloat.
“If you work hard enough, you can get by,” he said. “But prices aren’t going down any time soon. You just gotta make things work.”
Across markets, malls and small-town shops, similar voices echo—tired but resilient, determined to keep the holiday spirit alive even as rising costs cloud what should be the most joyful time of the year.
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