Higher-Income Households Drive Holiday Spending Gains As Inflation Reshapes Consumer Priorities

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Americans are embarking on the 2025 holiday season with a blend of resilience and restraint, planning to spend more even as inflation and tariffs continue to squeeze budgets, according to consulting firm KPMG.

Consumers expect to lift their holiday spending by 4.6% from last year, but the report finds that rising prices, not stronger household finances, are the primary driver behind the increase. Much of the anticipated growth comes from higher-income shoppers, while lower-income households plan to trim expenses. KPMG’s finding exceeds the estimate from rival firm Deloitte, whose research shows U.S. holiday retail sales are expected to rise between 2.9% and 3.4% this season.

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