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Christmas Inflation? It Might Make Sense to Start Shopping Now!


Christmas shoppers depend on discounts that one could only find on Black Friday. This year the discounts may not only be small but non-existent. Overseas manufacturers have had to deal with the shortage of shipping containers, the Suez Canal incident, and the disruptions of COVID. They have disrupted supply chains and the distribution of consumer goods to the US. Now, these regions are having to do with the aftermath of devastating flooding.

In Western Europe and China's Henan province, floods have devastated vital transport hubs and several major businesses, affecting everything from electronics to clothing and appliances.

It is a classic supply and demand issue. The demand is already there due to the Christmas shopping season. As we approach the Christmas shopping season, the supply of goods could become slimmer and slimmer, creating higher prices for the remaining inventory.

The perfect storm has hit the supply chains and distribution outlets that typically deliver items for Christmas shopping. Then you have your wild card, COVID, and the pandemic's effects on this Christmas season. So, what do you do?

My main concern is that the average consumer will be unaware of this supply and demand problem at Christmas. This article on cnbc.com concerning the supply and demand problem was not a front copy article. It was an article buried at the bottom of the page, removed by mid-morning.

Of course, this is pure speculation. However, you can see the writing on the wall. As a remedy to the problem, it might make sense to start your Christmas shopping early. It is improbable in the best-case scenario that retailers will drastically discount prices this year. So there may not be an advantage to waiting on discounts that may not be there. The advantage to starting early on your Christmas shopping might be the availability of items.

Of course, there is one more considerable advantage to starting early. You might have a less stressful Christmas season.


Need a second opinion about money and investment issues? Just ASK BOB! Bob is available and always happy to share his views. Bob Brooks is a Financial Adviser and host of The Prudent Money Radio Show, aired daily at 3 PM CST on 91.3 FM, 97.5 FM, and 99.9 FM in the Dallas Forth Worth metroplex. Listen online at www,prudentmoney.com. You can reach Bob at 972-386-0384 and online at info@prudentmoney.com.