Inflation, early shopping set to slow online holiday spending

Inflation, early shopping set to slow online holiday spending

According to a report, online holiday sales in US will increase at their slowest pace this year since 2015.

This comes as shoppers are concerned about decades-high inflation and soaring interest rates.

Online sales in November and December are projected to rise 2.5% to $209.7 billion, compared with an 8.6% increase a year ago.

More people appear to be returning to in-store shopping and hopping on to early shopping to save money.

Customers are also planning on shipping fewer holiday packages, resulting in lower volume forecasts.

Annual inflation ran around 8.3% in August, impacting Americans' purchasing power.

Meanwhile, the Federal Reserve continues to take aggressive measures to hike interest rates, further hitting consumers' spending power.

A report also projected Black Friday online sales to rise just by 1% and Thanksgiving sales to fall by 1%.