More Tricks, Fewer Treats
That is what Almost Daily Grant’s is predicting for Halloween this year. Candy prices are up by 13% compared to last year, the largest annual increase on record. Because of general inflation, households are expected to decrease their total spending on candy. As explained in its commentary:
Talk about a sugar high. Citing data from the Labor Department, The Wall Street Journal relays that candy prices are up 13% from a year ago, the largest one-year increase on record, owing to galloping labor costs along with flour and sugar prices.
Consumers are responding to those surging costs with a modest downshift, as the National Retail Federation reckons that households will average $100 in Halloween-related spending this year. That’s down from last year’s $103 outlay.
More tricks, fewer treats: it’s a type of hedonic adjustment.
Source: http://foundationsofecon.blogspot.com/2022/10/more-tricks-fewer-treats.html
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