The Sconi

With runaway inflation holding steady, more than one out of three American consumers lament they’ve had to readjust their budgets in order to afford high back-to-school shopping prices as the start of the new school year approaches.

As part of its annual survey on the issue, the National Retail Federation (NRF) and Prosper Insights & Analytics concludes 38% of consumers agree they are now cutting back in other spending areas to cover the cost of items for the upcoming school year. In addition, families said they expect to be forced to spend more per person on both K-12 and college items this year due to soaring prices.

“Families consider back-to-school and college items as an essential category, and they are taking whatever steps they can, including cutting back on discretionary spending, shopping sales and buying store- or off-brand items, in order to purchase what they need for the upcoming school year,” NRF President and CEO Matthew Shay said in a press release. “The back-to-school season is among the most significant shopping events for consumers and retailers alike, second only to the winter holiday season.”

NRF now reports that total back-to-school spending is expected to at least match 2021's record-high of $37 billion, all while eclipsing the rate of 2019 by $11 billion. For families with children in grades K-12, spending is estimated to jump by an average of $864 on school items – $15 more than last year's reports and $168 more than that of 2019.

When it comes to back-to-college spending, costs for essentials reached a record of $71 billion in 2021, the highest in the NRF's survey history. Already, such spending is pegged to add up to a staggering $74 billion this year.

Overall, rising prices has impacted costs in all categories of back-to-school shopping, with NRF reporting data shows 68% of respondents agreed they have noticed higher prices in categories that also include such essentials as clothing and accessories.

In an effort to slow the trend and lessen the burden felt by parents, 14 states have now implemented seasonal tax holidays, temporarily removing the sales tax on many essential items, Today reported. To date, Wisconsin is not among those states.

AP News reported many could almost see the price surge coming after Walmart noted earlier this summer that higher prices on gasoline and food have been forcing shoppers to make fewer discretionary item purchases, especially for things like clothing.

As a result, the retailer lowered its profit outlook for the rest of the year.

Conducted from June 30 to July 7, the survey included feedback from 7,830 consumers, making it the most comprehensive back-to-class annual survey.