Americans Likely Scaling Back Valentine’s Day Spending As Inflation Bites

Americans are getting cautious about how they spend their dollars this Valentine’s day—spending less money and prioritizing certain relationships. Blame inflation.

According to forecasts by the National Retail Federation (NRF), even as more Americans plan to celebrate the holiday, the average household spend on Valentine’s Day is likely to fall 3.6% to $185.81, while total U.S. consumer spending for the holiday is expected to drop slightly to $25.8 billion.

The industry body surveyed 8,329 U.S. consumers about their Valentine’s Day shopping plans, 53% of whom said they will celebrate the holiday.

Celebrating Love Costs More

The cost of candy, which was the most popular gift choice for respondents to NRF’s Valentine’s Day survey, rose 4.7% in January compared to the same month a year ago, according to Consumer Price Index (CPI) data.

You would also need to shell out more if you thought of gifting jewelry, flowers, cupcakes, cakes, and cookies. The NRF expects consumers to spend $6.4 billion on jewelry and $2.6 billion on flowers this year, higher than a year ago.

Deliveries would also cost you more, but hand-written notes or gifts you wrap yourself could help you save as prices of stationary, stationery supplies, and gift wrap moderated slightly.

Spending On What Matters

This year American consumers are prioritizing spending on their significant others, in contrast to celebrating all relationships such as those with co-workers and pets, according to the NRF. Spending on partners is expected to hit a record $14.2 billion this year.

“We’re also seeing shoppers opt for non-traditional gifts focused on experiences, like recreating your favorite cocktail at home with a new barware set, planning for an upcoming adventure with travel accessories, or elevating couples’ game night with table shuffleboard,” Shopify President Harley Finkelstein told the NRF.