Holiday price hikes squeeze budgets, shoppers scale back
Puerto Rico’s consumers are heading into the 2025 holiday season facing some of the toughest financial pressure in years, with 66% reporting they are worse or much worse off economically and 68% prepared to cut back on their Christmas spending.
Those findings anchor the 12th edition of “Santa’s List 2025,” the annual survey conducted by Arteaga & Arteaga, which highlights how inflation, utility costs and higher import tariffs are reshaping local purchasing behavior.
Despite the strain, the study shows that the holiday spirit remains intact.
“Everything indicates that Puerto Ricans will not lose their Christmas spirit, but they will adjust their celebrations to a tight economic reality,” said Juan Alberto Arteaga, president of Arteaga & Arteaga.
Consumers will adopt what he describes as a “multichannel shopping” approach, mixing in-store visits and online browsing to find the best prices before committing to a purchase.
Still, the impact of rising costs is clear. Compared to last year, purchase intentions show a 21% drop, with shoppers focusing on offers and specials (64%), low prices (60%) and product variety (50%).
Budget pressures are shifting holiday priorities, and electricity bills top the list of financial burdens. Seventy-two percent cited their power bill as one of the most severe hits to their household income.
Many also pointed to food prices and recently increased tariffs on imported goods as factors worsening their economic situation.
A sharp decline in discretionary spending is among the clearest signs of tightening wallets.
“The trend of ‘self-gifting’ is down compared to previous years,” Arteaga said.
One-third of participants said they would not be buying themselves anything this year.
Gifts for children, Christmas dinner and a special gift for a partner remain “non-negotiable” items, but accessories, décor, entertainment and travel are among the first categories facing cuts. Meanwhile, 67% expect to reduce spending on gifts and 66% on decorations, underscoring the shift toward a more subdued but still meaningful celebration.
Credit cards, gift cards and careful budgeting will play a larger role as consumers stretch limited resources. Retailers have already adapted to the environment, launching Black Friday promotions earlier than usual to capture sales.
For many retailers, holiday purchases can account for up to a third of annual revenue, creating high stakes for the year-end period. Black Friday remains the dominant shopping moment, with 52% having planned purchases then, followed by the week before Christmas at 35%, the study found.
Support for small and midsize businesses is steady but conditional. Fifty-one percent plan to buy from local merchants, but many consumers emphasize that better prices and broader selection are essential to strengthen that commitment.
“The support is there and could be greater if experiences were aligned with needs. The consumer is crying out, ‘Help me support you,’” Arteaga said.
Even with limited budgets, Puerto Ricans remain determined to uphold traditions. Family gatherings, traditional foods and seasonal music remain central to the holiday mood.
As Arteaga noted, “We will continue to eat our favorite dishes…. The distinctive culinary creativity of Puerto Ricans will be the main ingredient in our Christmas dinner.”
