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Soaring Prices Impact Christmas Tree Costs as Consumers Prepare for the Holidays

Market data reveals that prices of Christmas trees, both real and artificial, have been significantly impacted by inflation. According to data obtained from the National Christmas Tree Association and the American Christmas Tree Association (ACTA), the average cost of Christmas trees has risen by ten percent compared to 2022, with prices ranging between $80 and $100.

Artificial trees have experienced the biggest price surge, with basic options starting at around $85 and going up to $1,000 or even higher.

Credit: Hannah McKay/Reuters

Jami Warner, the executive director of the ACTA, shared insights from their 2023 survey, stating, “According to our 2023 survey, 52 percent of artificial Christmas tree owners purchased their tree for under $200, and 27 percent paid $200 to $400.”

Warner emphasized that costs for artificial trees can vary based on factors such as the producer, retailer, size, shape, and additional features like pre-lit options.

The primary reason for these high prices is the rising production costs, which are a consequence of ongoing supply chain issues affecting multiple industries in the United States. Despite concerns over inflationary prices, the ACTA found that 94 percent of Christmas tree consumers still intend to purchase one or more. Interestingly, nearly eight in ten respondents expressed a preference for artificial trees over live ones.

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Warner expressed encouragement at the continued consumer demand for all types of Christmas trees in 2023, asserting, “There’s no such thing as a bad Christmas tree, and there is no better way to bring cheer to the Christmas season than by celebrating with a Christmas tree.”

She advised consumers to buy their trees early to avoid the rush and find the tree that best suits their needs. Furthermore, she noted that this year, more consumers, particularly those concerned about inflation, have been purchasing their decorations well before the typical shopping months of November and December.

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While expensive Christmas trees are adding to the financial strain on consumers this holiday season, it is important to note that inflation is also impacting the prices of everyday items year-round. A recent analysis from the Heritage Foundation revealed that inflation is currently at its highest point in 40 years, with limited signs of improvement.

The analysis highlights how, when President Biden took office, inflation was below the Federal Reserve’s two percent target, with prices rising only 1.4 percent over the previous 12 months. However, after a year and a half of increased government spending and borrowing, prices began to rise at an alarming rate, resulting in an annual inflation rate of 9.1 percent – 6.5 times higher than what Biden inherited.

Credit: Leah Millis/Reuters

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Malik is a skilled writer with a passion for news and current events. With their keen eye for detail, they provide insightful perspectives on the latest happenings. Stay informed and engaged!