funflation

Reports highlight how the cost of hobbies and leisure activities is climbing faster than many everyday expenses, a trend being called 'funflation'. From sports gear and craft supplies to concerts and gaming, prices for discretionary pastimes are rising as companies pass on higher costs. Commentators say the 'hobby economy' is now a serious subject, with consumers weighing how much they will keep spending on enjoyment as budgets tighten.

Investors are weighing the so-called 'funflation' effect, in which consumers keep spending on experiences like travel, concerts and dining even as inflation squeezes budgets for goods. The trend is seen as a headwind for traditional retail stocks selling merchandise, while entertainment, leisure and travel companies may benefit. Analysts suggest it could reshape which retail names hold up through the holiday season.