The Grinch in the Gift Aisle: Holiday Gifts Prices Up 26% This Year, Report Finds

The Grinch in the Gift Aisle: Holiday Gifts Prices Up 26% This Year, Report Finds

Polling Shows Most Americans Stressed About High Holiday Prices, Giving Fewer Presents as Prices for Go-To Gifts Like LEGO Sets, Jewelry, and Gaming Consoles Soar

Holiday shoppers are in for a jingle bell shock this year as rising prices on everything from toys to tech are putting the most sought-after gifts out of reach. New analysis from Groundwork Collaborative, The Century Foundation, and AFT finds that prices on many of this season’s most popular holiday gifts are climbing faster than Santa up the chimney, with prices rising an average of 26% since last year — nearly nine times overall inflation. Even the Grinch would balk at the price hikes on many go-to holiday gifts: home and kitchen items are up 38%, electronics are up 34% while clothing, shoes and accessories are up 20% and toys and games are up 17%. In President Trump’s economy, even holiday cheer is plagued by mark ups.

According to the analysis of 70 recommended, roughly half (46%) of all gifts, across age groups, posted a price increase since last year:

• For infants, the GUND Animated Kissy Penguin is up 51%
• For toddlers, the Melissa & Doug Stainless Steel Tea Set is up 55%
• For school-age kids, the VTech KidiZoom Camera jumped 76%
• For tweens and teens, Bell + Howell LED color-changing light tape more than doubled in price, increasing by 114%
• For adults, the LEGO Icons Dried Flower Centerpiece jumped nearly 30% while the price of the Cooper Cooler Rapid Beverage Chiller is up 253% from last year

New polling from Data for Progress, released alongside the analysis, shows that price hikes are creating holiday headaches for consumers, and they know exactly who to blame:

• More than two-thirds of voters are stressed about affording holiday expenses.
• More than 40% of families are buying fewer gifts and nearly one-third are giving presents to fewer people.
• Nearly 60% of voters hold President Trump responsible for rising prices this holiday season — including 44% who say they blame the president a lot.

Groundwork Collaborative’s Executive Director Lindsay Owens reacted with the following statement:

“The holidays should be a season of joy and giving. But thanks to a year of disastrous economic policy from the grinch in the White House, prices are higher than ever and holiday shoppers are feeling fearful, not cheerful. Trump’s economic policies already are forcing families to choose between filling the fridge or filling loved ones’ stockings amidst skyrocketing prices. Yet another economic lump of coal delivered straight from the White House.”

Angela Hanks, Chief of Policy Programs at the Century Foundation, added: 

“This holiday season, families are paying more to put fewer presents under the tree thanks to President Trump’s policies. While the President may dismiss the financial squeeze millions of families are feeling across the country as a ‘con job,’ the reality is that the holidays will be anything but merry or bright as the struggle to afford gifts for their loved ones. This comes at a time when Americans are already seeing their costs rise under Trump on everything from heat to healthcare.”

AFT President Randi Weingarten remarked:

“These holidays, working people are being crushed by stratospheric prices on just about everything. No American should have to choose between celebrating the season with their family and paying the rent. But for millions, the sound of jingle bells has become a five-alarm affordability fire. Every politician, including the President, should be trying to solve this, rather than ignoring rising costs or denying the affordability crisis is real. That would be a good start to spreading good tidings.”

Background: 

• Trump’s tariffs are inflating prices across nearly every gift category. With nearly 90% of clothing, more than 80% of toys, and about 70% of electronics imported, U.S. shoppers are fully exposed to tariff-driven markups. This holiday season alone, tariffs may add up to $28 billion to Americans’ holiday shopping bills, or roughly $130 per shopper.
• Sought-after tech gifts are pricier than ever — a lump-of-coal price for what should be a wish-list treat. Historically high tariffs on China, Japan, Vietnam, and other major manufacturing hubs are fueling sharp increases in tech prices. Microsoft raised Xbox prices twice this year, including a $70 hike on select consoles, and Sony increased the PlayStation 5 price by $50 citing tariff pressures. All in all, popular electronics are up across the board: Beats Solo headphones (up 30%, Sony camcorders (up 35%), VTech KidiZoom cameras (up 77%), and Tamagotchi Pix (up 95%).
• Decking the halls costs more, too. Artificial Christmas trees are up as much as 15% this year. As a result, retailers like Costco have reduced inventory by up to 15%, tightening supply. Families have limited alternatives: many popular tree varieties, including pre-lit designs, have never been produced in the U.S., leaving families fully exposed to higher import and supply-chain costs.
• The burden of higher prices isn’t being shared equally — for some families, it’s less holiday cheer and more digging out from an economic snowdrift. 
• Lower-income households expect to trim more than $100 from their holiday budgets, while higher-income households plan to spend about $100 more this season. This widening gap mirrors the broader K-shaped divide taking hold in the economy, with the top 10% of earners now accounting for nearly half of all U.S. spending.
• Major retailers are warning that families are pulling back, with Target CCO Richard Gomez saying consumers are “choiceful, stretching budgets and prioritizing value,” and “remain cautious” heading into the holidays. In addition, Walmart’s CFO reports “moderation in spending in the low-income cohort,” consistent with slowing wage growth.

The University of Michigan Consumer Sentiment survey revealed a sharp divergence: Sentiment has fallen significantly among households making under $75,000, even as sentiment has improved for households earning above $200,000. As a result, lower-income families are relying more on credit cards and Buy Now, Pay Later (BNPL) services to get through the season.