The holiday season is becoming more expensive as the price of Christmas trees, both real and artificial, sees a significant increase due to inflation. A report from Fox Business, based on data from the National Christmas Tree Association and the American Christmas Tree Association (ACTA), highlights that the average cost of Christmas trees has risen by ten percent from last year, now ranging between $80 and $100.
Artificial trees, in particular, have experienced a notable price hike. According to Jami Warner, the executive director of ACTA, the prices for these trees start at around $85 and can escalate to $1,000 or more, with over half of artificial Christmas tree owners having purchased their tree for under $200. Factors such as the tree’s producer, retailer, size, shape, and features like pre-lit options significantly influence the cost.
The primary reason behind this surge is the rising production costs, which are a residual effect of ongoing supply chain issues impacting various industries across the United States. Despite these increased prices and widespread concerns about inflation, the demand for Christmas trees remains robust. The ACTA survey reveals that 94 percent of participants still plan to buy a tree this season, with a majority preferring artificial trees.
To navigate this inflationary trend, Warner advises consumers to shop for their Christmas trees early, noting that many are already purchasing their holiday décor well before the traditional shopping seasons of November and December to avoid the holiday rush and secure the best choices that fit their needs.
This spike in the cost of Christmas trees adds to the overall financial strain consumers are facing due to high inflation rates. An analysis from the Heritage Foundation in October pointed out that inflation is at a 40-year high, with prices rising substantially since President Biden took office. The report emphasized that inflation was well below the Federal Reserve’s two percent target when Biden started his term, but it has since escalated dramatically, reaching an annual rate of 9.1 percent.