Local 12: Valentine’s Day spending hits record high

UC economist says consumers continue to spend despite rising costs

Valentine’s Day costs are higher than ever, Local 12 reported, but a University of Cincinnati economist said most people are still spending.

LCoB faculty and staff

David Brasington

Americans are expected to spend approximately $26 billion this Valentine’s Day, according to the National Retail Federation, which is an increase of approximately $1 billion compared to last year. The cost of jewelry, chocolates and meals at restaurants all have spiked in the past year.

"Prices went up 6.5% over last year, and wages went up 4.4%, so prices are rising faster than wages so people's real purchasing power continues to decline, but people are still spending," David Brasington, PhD, a professor and the James C. and Caroline Kautz Chair in Political Economy at the University of Cincinnati Carl H. Lindner College of Business, told Local 12.

There are ways to decrease the sting of inflation, Brasington said, such as celebrating at home. The price of sirloin steak has actually decreased in the past year, and prices for bottles of wine are only up about 3.5%.

Still, many people are willing to spend a little extra for experiences now after the COVID-19 pandemic disrupted plans in recent years.

"People are switching their consumption from goods and services, including travel and meals, things that they sort of have a pent-up demand for, what they could what they couldn't do during COVID or lockdowns," Brasington said.

See more from Local 12.

Featured image at top courtesy of Unsplash.

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