Frugal Bank advises consumers to stock up on essential items, especially household goods, as prices are expected to see a “significant” increase in early 2026.
According to Fox News, Lauren Murphy, Managing Director of the Retail Finance Department at Frugal Bank, stated that retailers “are basically trying to maintain or slightly increase prices across various categories during this holiday season. Many retailers are offering promotional activities for specific products, and even providing larger discounts.”
At the beginning of 2025, many retailers strategically increased their inventories in preparation for upcoming new tariffs.
Murphy warned that these tariffs are expected to raise the costs of new goods, and retailers are likely to pass these costs on to consumers in 2026.
From May to September, retail inventories increased by 14%. However, it is projected that by early 2026, inventories still in transit from overseas suppliers will increase by 62%.
Household goods retailers are particularly reliant on imports, leaving little room to absorb the continuously rising tariff costs, resulting in faster price increases compared to categories like clothing. Murphy mentioned that household retailers have already begun implementing strategic price increases, indicating that consumers may see higher prices in the coming months.
According to the National Public Radio (NPR) citing data from the U.S. Bureau of Labor Statistics, bedroom furniture prices have risen by 11% since February 2020. Prices of other household furniture, such as living room, dining room, and kitchen furniture, have increased by 25%.
Murphy noted that clothing prices may also rise, but due to their lower base price, the impact is relatively small. She warned that compared to that, even a 10% increase in the prices of high-end goods might deter some buyers.
She urged consumers planning to purchase large furniture items to do so now, as it could mean “saving a significant amount of money before prices rise in early 2026.”