US households are feeling the pinch of rising living costs this holiday season, with many scaling back on gift-giving and discretionary spending. At a Christmas market in Gaithersburg, a suburb of Washington, shoppers expressed concerns about affordability, citing higher prices for everyday items and gifts.

James Doffermyre, a 37-year-old high school teacher, said he and his family have had to adjust their holiday plans. “We always have a big Christmas, but this year we’re just buying gifts for the kids,” he said. This sentiment is reflective of the broader trend, as American households contend with creeping inflation, which has edged up to 3.0 percent annually.

The issue of affordability has become a pressing concern, with voters expressing dissatisfaction over rising costs of living in recent elections. Even President Donald Trump has acknowledged the problem, after initially dismissing it as a “hoax.” The tariffs imposed by the administration have led to increased business costs, which some companies have passed on to consumers through higher prices.

Shoppers at the market shared their own strategies for coping with the rising costs. Karen Jenkins, a 73-year-old special education teacher, said she has been limiting her spending on groceries and cutting back on non-essential activities. Pastry chef Olivia McPherson, 30, has been renting from a friend and buying less meat to make ends meet.

Economist Joanne Hsu noted that consumers were more confident about their income during the Covid-19 pandemic, but the current situation is different. “This time, consumers are not as confident, and they’re feeling the pinch of higher prices,” she said.

As the holiday season progresses, many Americans will have to make tough choices about how to allocate their limited budgets. Some, like 23-year-old machine operator Oscar, are working multiple jobs to get by. “If you work hard enough, you can get by,” he said, “but I feel like the prices aren’t going down anytime soon. You just have to make things work.”