SCSU’s Banaian; Holiday Shopping and Gas Prices

The holiday shopping season is underway.  St. Cloud State Economist King Banaian joined me on WJON.  He says Central Minnesota shoppers are looking for savings and name brands are not as important to many.  Banaian believes finding a cost effective alternative is the goal.  He says inflation and high prices of so many good and services are causing many to be cost sensitive more this year as opposed to recent years.

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Black Friday, small business Saturday and Cyber Monday are all days focused on holiday shopping.  Banaian says because low prices are offered over extended periods of time before and after black Friday, shopper's buying habits have changed.  He says many know it is no longer urgent to make these purchases on designated days instead they do it over a period of days.  Online shopping has also changed how many Christmas shop.

The soon to be 2nd Trump Administration has hinted at tariffs for Mexico and Canada.  Banaian expects the tariffs to be implemented slowly which will allow for modest gains in inflation.  He also suggests interest rates could be on the rise once these tariffs take hold.  Banaian believes the Trump Administration will watch inflation closely knowing that the struggling economy in recent years have contributed to Trump's re-election due to the dissatisfaction with the Biden administration.

Gas prices in Central Minnesota are hovering between $2.59 and $2.79 a gallon.  Banaian believes the price dropping below $2.50 a gallon is a real possibility within the next couple weeks.  He says holiday travel in December keeps demand stable but we could see a further drop in gas prices in January when travel demand diminishes.

If you'd like to listen to my conversation with King Banaian, it is available below.