‘Grinchflation’ set to undermine Christmas sales this year, survey predicts

My Nguyen

20 hours ago

Rising living costs are prompting Australians to tighten their holiday budgets this year, according to the Finder Shopping Report 2026.

The widespread pull-back in consumer spending, dubbed ‘Grinchflation’, comes as many consumers face ongoing financial pressures ahead of this year’s peak festive season.

About 61 per cent of Australians, about 13.3 million people, intend to adopt at least one cost-saving strategy to manage their festive spending, the survey found.

The most common tactic is buying fewer presents, with 26 per cent of consumers planning to cut back on gifts. In addition, 22 per cent are setting strict spending limits, while 19 per cent plan to reduce their everyday grocery and essential expenses to accommodate holiday costs.

Meanwhile, 13 per cent are reselling personal items through secondary marketplaces, reflecting a fundamental shift towards buying and selling pre-loved goods over the past year.

“It’s concerning that so many Australians are planning to use credit or BNPL services they wouldn’t normally use just to afford Christmas,” said Sarah Megginson, personal finance expert at Finder.

For payment, credit or BNPL services for seasonal purchases are expected to increase this season, with 13 per cent of respondents planning to rely on BNPL platforms or secondary credit that they do not typically use.

She also noted that heightened living costs are forcing consumers to prioritise long-term financial stability over discretionary holiday spending.