Inflation Could Be a Key Driver of Holiday Spending This Year: 4 Ways Shoppers Can Combat It

This holiday season, shoppers are clasping their wallets tighter. According to the 2025 Deloitte Holiday Retail Survey, average consumers are forecasted to shell out $1,595 this season, which is down 10% from 2024. However, this year’s sales are likely to get a boost from higher prices.

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The Mastercard Economics Institute (MEI) forecasts a 3.6% increase in retail sales this holiday season, with inflation playing a larger role in driving overall growth compared to the 2024 holiday season. Rising costs will influence consumers’ shopping habits, per Deloitte, but there are effective strategies to help mitigate their impact.

Here are four ways to stay festive and financially savvy this year.

Use AI Personal Shopping Assistants

To help find the best deals without setting aside hours to read reviews and compare prices, Deloitte’s research shows that 33% of shoppers plan to use AI tools to speed up the holiday shopping process.

“By utilizing AI personal shopping assistants — tools that instantly surface the best deals, compare prices across retailers, and even predict when prices are likely to drop,” said Rob Garf, senior vice president of retail strategy and insights at Cordial.

It’s a clever way to save time and money.

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Focus on Intentional Spending

Avoid impulse shopping by creating a budget and sticking to your list, but don’t forget to account for overlooked items like hosting gifts, food, travel, and shipping, Ashley Feinstein Gerstley, shopping and saving strategist at Rakuten, said.

“Prioritize the things that matter and provide the most joy, and let go of the rest,” she explained. “Buying fewer, higher-priority items maximizes the impact that your purchases will have while avoiding extra spending and even waste.”

Stack Cash Back and Coupons for Double the Savings

Throughout the season, there will be plenty of deals to take advantage of, including cash back and coupons. According to Mackenzie Shand, BlackFriday.com’s executive editor, a strategy that maximizes savings is combining coupons with cash back offers.

“Shoppers can use tools like browser extensions to automatically apply promo codes at checkout and earn cash back on top of existing discounts,” said Shand. “Those layered savings can easily add up to an extra 10%-20% off your total purchase, helping offset higher prices caused by inflation.”

Look Out for Gift with Purchase Promos + Gift Sets

Another smart tactic to stretch your dollar further this shopping season is to be on the lookout for free gift promotions that many retailers, such as Target, Macy’s and Ulta, offer.

“The free items you receive can be set aside to use as part of your holiday gifts at no extra cost to you,” said Shand. “In some cases, this free item is a gift card, which you can then use for future purchases for yourself or for gifting.”

While inflation is challenging for many this holiday season, and year-round, smart shopping can help keep more money in your bank account without sacrificing the spirit of the season.

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This article originally appeared on GOBankingRates.com: Inflation Could Be a Key Driver of Holiday Spending This Year: 4 Ways Shoppers Can Combat It

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