Why consumers are spending a lot this summer

The price of “funflation”

According to federal data, some ticket prices have risen sharply in recent months.

According to the Bureau of Labor Statistics' Consumer Price Index, ticket prices for sporting events rose 21.7% in May 2024 in comparison with the previous 12 months. Of the several hundred categories that make up the inflation index, this category experienced the very best annual inflation rate. Ticket prices for movies, theaters, and concert events rose a comparatively modest 3% on an annual basis.

The overall consumer price index rose 3.3 percent in May from a 12 months earlier. The index measures how quickly prices are changing across the U.S. economy and covers every part from haircuts to household appliances.

Why Americans do anything for entertainment

Despite rising costs, 38% of adults said they plan to tackle more debt in the approaching months to travel, eat out and watch live entertainment, in accordance with a Report from Bankrate.

Meanwhile, 27 percent of respondents said they might go into debt to travel this 12 months, while 14 percent would go into the red to eat out, and one other 13 percent would take out loans to go to the theater, see a live sporting event or attend a concert – including the European leg of Taylor Swift's Eras tour, Bankrate found.

“There is still a lot of demand for out-of-home entertainment,” Ted Rossman, senior industry analyst at Bankrate, recently told CNBC.

“Part of this reflects a 'you only live once' mentality that has intensified during the pandemic, and part of it is because many economic indicators – including GDP growth and the unemployment rate – are in favorable shape,” Rossman said.

Bankrate found that younger adults, especially Generation Z and Millennials, usually tend to spend money on these non-essential purchases.

The problem with Generation Z is that they are “not frugal,” says Jim Cramer

Although rising living costs make things difficult, especially for young professionals, other studies show that young adults are more relaxed about their long-term financial security.

Nearly two in five Gen Z and Millennial travelers have spent as much as $5,000 on tickets to live events at their destination alone, a recent Study by Bread Financial found.

And many say it's value it. Rather than cutting spending to save lots of more, 73% of Generation Z ages 18 to 25 said they might ultimately prefer to have a greater quality of life than extra cash within the bank, in accordance with one other Prosperity Index report from Intuitive.

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