Old North News

Rampant inflation hasn’t stopped the approach of the upcoming school year, and one-third of American consumers have had to reallocate certain areas of their budget in order to afford the high prices of back-to-school supplies, a recent national survey showed.

To give parents a bit of relief from these high prices, some states have implemented seasonal tax holidays this summer, temporarily removing the sales tax on many school-related items. North Carolina, however, is not one of the states offering a sales tax holiday.

“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,” Matthew Shay, National Retail Federation (NRF) president and CEO, said in a recent 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.”

The annual survey, distributed by the NRF and Prosper Insights & Analytics in July, showed that 38% of consumers are cutting back in some spending areas in order to cover the cost of back-to-school items.

The NRF reported that total back-to-school spending is expected to match 2021's record high of $37 billion and exceed 2019’s total by $11 billion. Families with children in grades K-12 plan to spend an average of $864 on school items—$15 more than they did last year and $168 more than that of 2019.

Last year's total spending on back-to-college essentials reached a record $71 billion—the highest in the NRF's survey history. But total spending in that category is expected to reach nearly $74 billion this year.

Inflation has impacted prices in all categories of back-to-school shopping. The NRF's survey results showed that a majority (68%) of respondents have noticed higher prices among a few top categories, including clothing, accessories and school supplies.

The survey received feedback from 7,830 consumers, making it the most comprehensive back-to-class annual survey. It was conducted June 30-July 7 and has a margin of error of +/-1.1 percentage points.

Although North Carolina is not one of them, Today.com reported that 14 states have implemented seasonal "tax holidays" this summer during which there is no state sales tax on certain items such as clothing, school supplies and even technology items like laptops.

Walmart, a popular outlet for affordable school shopping, noted in July that higher prices on gasoline and food have been forcing shoppers to buy fewer discretionary items, particularly clothing; a recent AP News report said. As a result, the retailer lowered its profit outlook for the rest of the year.