It’s no question that inflation has been pushing up prices on popular gift categories.
To help tailor those last-minute present lists, we’ve broken down what items have seen the largest price increase, according to e-commerce data from PayPal Honey, a subsidiary of PayPal.
By and large the cost of jewelry has most steely increased compared to last year with a 31% rise.
This can partly be attributed to gold’s price hike. In March, prices soared to more than $2,000 per ounce.
Since then, prices have leveled closer to where the year started, although still higher than they were pre-pandemic. On Friday, Dec. 16, gold was priced at $1,790 per ounce.
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Gold prices haven’t slowed foot traffic at Metal Art Studio Fine Jewelry in Grand Rapids.
A week before Christmas, the store was still bustling. Carol Wagen, co-owner, said budget-conscious shoppers were arriving with a set amount they couldn’t exceed or purchase fewer items.
“If they’re cutting from their [gift] list I don’t think they’re cutting jewelry,” she said. “They’re just adjusting the way they’re buying jewelry or the things they’re buying. Maybe they buy fewer pieces or they shift into silver jewelry.”
Yellow gold, popular in the 80s and 90s, has made a comeback. While the aesthetic is popular, the price point may not be.
For stylish customers looking to stay on budget, Wagen suggests vermeil jewelry, a piece in pure sterling silver plated with a thin layer of gold.
“You can get into a gold look but drop a zero off the end,” she said.
Related: A hurdle to holiday shopping: Skyrocketing credit card rates
Looking to impress with a high-end gift that hasn’t been beaten down by inflation?
Scents nearly static
Perfume prices have only increased 3% year-over-year, according to PayPal e-commerce data.
However, sales in the prestige beauty category continue to climb, according to market research company NPD Group.
Double-digit growth in the beauty sector has been consistent this year especially for higher-end products found at beauty suppliers like Sephora or Ulta Beauty and fragrance leads that category.
The rise in fragrance happened simultaneously with mask mandates in 2020 and 2021, said Larissa Jensen, vice president beauty industry advisor at NPD.
Lipstick sales dipped and fragrance took its place as the pick-me-up purchase, Jensen said. The NPD Group tracked a 49% year-over-year increase in fragrance purchases from 2020 to 2021.
“It was more than just buying like the $90 fragrance that you would get at Macy’s, it was buying the $300 fragrance,” Jensen said. “They were buying the more expensive one because they had the ability to treat themselves, because think about it , no one did anything in 2020.”
This year the growth has stayed strong, with reports still showing consumers are opting for higher-end brands despite higher prices and fewer discounts in the prestigious category.
Fragrance dollar sales grew by 4% from October 2 through December 3, compared to the same period in 2021, according to The NPD Group. The category also outperformed overall discretionary general merchandise spending during key weeks, including Black Friday and Cyber Monday.
Part of the growth can be attributed to the return of in-person shopping. Despite better deals online, fragrance sales at brick-and-mortar outlets outperformed the e-commerce during the week of Black Friday.
“Consumers are returning to holiday gatherings this year and embracing the in-person store experience where they can test products and get advice from sales associates, which bodes well for fragrance sales and the beauty industry overall,” said Jensen.
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