Retail advisor says that prices are increasing between 10% and 15% for the most desired gifts.
The traditional Valentine’s Day celebrations, and gift exchanges may look different this year because inflation is at a new 40-year high.
According to Marshal Cohen, chief retail industry advisor at NPD Group, prices are increasing between 10% and 15% for the most sought-after gifts.
According to a Labor Department report, January’s consumer price index increased 7.5% compared to a year earlier. This is the fastest increase since February 1982 when inflation reached 7.6%.
Cohen stated, “We have this elevated level of things, from greeting cards to flowers and chocolates to chocolates.”
Additionally, the cost of “the fancy dinner you want to take your beloved one out to” will be higher.
Cohen stated that although restaurants are more expensive on Valentine’s Day traditionally, it will be close to 20% to 25% higher this year. Even making a meal can cost up to 10% more.
He stated, “We have raised prices in every way that we look.”
Cohen pointed out that inflation is not the only concern. The omicron version of COVID-19 continues to spread rapidly throughout the country. This means that traveling and eating out are still very dangerous.
He said, “It’s difficult to get into your favorite restaurants just due to the fact that they don’t have enough capacity to do so.”
Consumers are now being asked to be more creative in gift-giving and planning their nights. He noted that this could be in the form home-cooked meals, or DIY gifts.
He said, “[You] might not be receiving the same gift year after year.” Valentine’s Day is all about the thought, not the money.