Reporter's Notes: High inflation casts a shadow on "Black Friday" in the United States

2022-11-28

"The challenge of shopping for holiday gifts is getting bigger and bigger, because all commodities have gone up in price!" Mary Leffler, a resident of North Carolina, expressed her emotion on behalf of many working class. High inflation and soaring interest rates have cast a shadow on this year's "Black Friday" shopping day in the United States. "Black Friday" is the beginning of more than a month long holiday shopping season in the United States. On this day, major businesses in the United States focused on discounts and promotions to attract consumers to buy inexpensive and desirable goods. November 25 is this year's "Black Friday". On the same day, the reporter found in an Outlets mall in Virginia that, unlike the past scenes of Americans' willful "buying, buying", there were few stores with slightly smaller discounts. Hernandez, a 25-year-old Hispanic boy, told the reporter that most of his income this year was spent on food and gasoline. "If the discount of these stores was not more than 50%, I would not have bought them.". American consumers are becoming more and more thrifty. On the one hand, wages are shrinking and debts are rising, and on the other hand, price pressures caused by high inflation. According to the data released by Moody's Analytics, American households spent $433 more on the same goods and services in October compared with the same period last year. However, in the first 10 months of this year, the average hourly wage after excluding inflation factors decreased by 2.8%. Data released by the US Labor Department earlier in November showed that the US consumer price index (CPI) rose 0.4% month on month in October, up 7.7% year on year. The increase in spending and the decrease in income have greatly reduced the purchasing power of American consumers. Against this background, the total debt of American households soared by 351 billion dollars in the third quarter of this year, the largest increase since 2007. The survey data released by the University of Michigan recently showed that the US consumer confidence index fell 5.2% month on month in November, down 15.7% year on year. According to a recent survey by NBC, 67% of respondents said that it was difficult to buy things they wanted because of inflation, while 69% worried that the economic downturn would limit their spending power. The survey also shows that inflation has a more significant negative impact on low-income people. Among American consumers, young people with short working years and little wealth accumulation are particularly hard pressed. According to the survey of NBC, 73% of young people aged 18 to 34 are worried about inflation, which makes them unable to buy what they want. Jay Schotenstein, CEO of American Eagle Brand Clothing Company, a fashion clothing brand mainly targeting young consumers, also said that inflation had a more significant impact on young people, and the company had to make greater efforts to promote sales to attract consumers. Consumers have a hard time, and businesses are also under pressure. From the data, many institutions predict that the sales of holiday shopping this year will increase slightly year on year. However, if the inflation rate is taken into account, the actual sales may be lower than last year's level. Wal Mart, Target, Amazon and other retailers have said that the rise in food and gasoline prices has made household budgets "tight", resulting in less sales of toys, furniture and small appliances than before. Many retailers have lowered their sales forecasts for this holiday shopping season. Jeff Kinnett, CEO of Macy's Department Store

Edit:Hou Wenzhe    Responsible editor:Weize

Source:xinhuanet

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