'Funflation' making hobbies pricier, but consumers are spending anyway
Despite rising costs for leisure activities, a phenomenon dubbed 'funflation,' American consumers continue to increase their spending on hobbies. Data suggests that while prices for recreation have risen, consumers are prioritizing these experiences, sometimes by substituting them for other expenses like travel.
Why it matters
This trend highlights the resilience of consumer spending in the face of inflation and provides insight into shifting household budget priorities.
It's getting more expensive to have fun in America, but consumers are splurging anyway, seeking out experiences ranging from outdoor activities to video games.
The Bank of America's latest analysis suggested that "funflation" — the increased cost of fun — may be rising, but consumers aren't cutting back.
In fact, spending on hobbies, which ranges from arts and crafts and hobby shops to retailers selling skiing, hiking, camping, or scuba diving gear, grew 7.9% in August 2026, year on year, per the bank.
This was double the growth of actual transactions, which were up 3.4%, meaning consumers are making more hobby purchases overall, as well as spending more on those hobbies.
"Funflation is the escalating cost of leisure activities, which is seen across prices from gas for weekend cars to ice creams on holiday," John Gathergood, an economics professor at the University of Nottingham in the U.K., told CNBC.
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