PwC’s annual Holiday Outlook report, now in its 10th iteration, shows an expected 7% increase in sales over last year — and a 15% increase from 2022. Leading the charge on spending are Millennials with Gen Z close behind. Millennials and Gen Z have seen their holiday budgets grow by 59% over the past two years. Millennials are expected to spend 22% more this season than in 2023. This compares to a 9% reduction in holiday spending for Gen X and a 6% decline for Baby Boomers. The annual inflation rate in the U.S. is currently sitting at about 2.5%. The report also noted that 34% of consumers who earn more than $65,000 per year “say they will spend more, while just one-fifth (21%) of those earning under $65,000 say the same.