Sugar Rush or Economic Boom?
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Post-pandemic prices have soared, elevating inflation to a whopping 7.5% according to the Bureau of Labor Statistics. With these high prices, previously affordable trips to local fast food chains like McDonald’s and Chick-Fil-A have risen to inordinate amounts. Economists attribute these inflated prices to the uncertain state of the economy, but with the holidays quickly approaching, will seasonal spending increase seller and consumer confidence?
Halloween is a prime spending period, from the candy to the costumes and decorations, it begins the holiday festivities (followed by Thanksgiving, Christmas, and New Years) as a large-scale consumer event. Bags filled with fun sized candy to hand out to local trick-or-treaters retail for $20-$25 per household, while costume prices can range from $20 - $50, on the low-end side. Participation in this holiday promises to be an expensive tradition, one that may be perfect to reassure businesses that their consumer body isn’t going anywhere.
Along with predictable Halloween celebration purchases, there are several other costly activities associated with the season, including classroom and house parties, haunted houses, and themed attractions. Tickets to these experiences tend to be extremely expensive, with the East Coast’s “Field of Screams” haunted walking trail tickets retailing for over $50 per person. Comparable events such as “Knott’s Scary Farm” on the West Coast sell tickets for prices $60-$70. Even local farms offer pricey hayrides. With thousands of guests a night, these excursions generate hefty cash flow into the market economy.
In addition to these popular and crowded attractions are typical fall activities popularized by Halloween, such as purchasing pumpkins from local patches or the grocery store. In addition to purchasing these pumpkins for a fall activity (and likely spending the extra few dollars on a pumpkin carving kit) other fall themed treats abound. For example, Starbucks celebrates the return of its popular and beloved Pumpkin Spice Latte (dubbed PSL by its fanbase). Forbes estimates that Starbucks has made at least $100 million from PSL every year since 2015, that’s a huge cash flow into the economy! In sync with the PSL craze are local business and supermarket pushes to sell pumpkin pies, creamers, apple ciders, and other fall-related items. An increase in fall items available to consumers coincides with greater amounts being spent on fall refreshments.
With all this extra cash flowing in the economy this season, producer speculation may be able to take one foot off the gas pedal for increasing prices. Loyal customers come back time and time again for a sugar rush that may just stabilize the current economy.
