The U.S. Bureau of Labor Statistics' September Consumer Price Index showed toy prices jumped 4.2% in a single month, the largest seasonally adjusted monthly increase in the index's 49-year history. Over the past 12 months, toy prices rose 6.6%, nearly double overall inflation of 3.7%. Assuming national average price changes, a holiday toy budget of $500 last year would need about $533 this year. The article attributes the rise to import tariffs, since China makes most toys sold in the U.S., and higher oil prices that raise costs for plastics, packaging and transportation. Manufacturers such as Mattel and Hasbro must either absorb these costs or pass them to consumers, while retailers face pressure to discount; Mastercard economist Michelle Meyer forecast 5.5% holiday retail sales growth, though rising prices could account for part of that.
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