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Inflation to dampen holiday spending, retail trade group forecasts



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Shoppers ascend and descend an escalator at the Willow Grove Park Mall in Willow Grove, Pennsylvania, November 14, 2020.Mark Makela | ReutersGetting shoppers to spend this holiday season won’t be easy.The National Retail Federation said Thursday that it expects holiday sales during November and December to rise between 6% and 8% from last year — a decline when factoring in the effect of inflation. The sales forecast excludes spending at automobile dealers, gasoline stations and restaurants.As of September, inflation is up 8.2% from a year ago, according to the Bureau of Labor Statistics’ consumer price index. That is a near four-decade high. The NRF, for its part, pointed to the personal consumption expenditures price index, which has increased 5.1% from a year ago, as a more apt measure to reflect rising consumer prices.The outlook comes after the pandemic fueled two years of exceptional demand during the key holiday shopping season. In 2020, holiday sales rose 8.2% from the previous year to $7 …

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