A trend involving a paradox has recently emerged: “funflation” is rising, yet consumers are not cutting back on their spending.
“Funflation” refers to the rising cost of entertainment and leisure, encompassing expenses related to hobbies ranging from outdoor activities to video games.
It represents the increasing cost of recreational activities, a trend visible across a wide range of prices—from fuel for weekend drives to the cost of ice cream while on vacation.
In the US, spending at stores selling arts and crafts supplies and equipment for skiing, hiking, camping, or diving rose by 7.9% year-over-year in August 2026. Recent data from the Bureau of Labor Statistics’ Consumer Price Index showed that the recreation index—which covers video and audio products, pets and pet services, sporting goods, photography, and recreational reading—increased by 2.7% over the 12 months ending in August. Meanwhile, sales at stores selling sporting goods, hobby supplies, musical instruments, and books rose by 10.7% in the 12 months leading up to August, outpacing the 6% growth in total US retail and food service sales during the same period.
When prices rise, home-based hobbies may take the place of out-of-town vacations, and cooking at home may replace dining out. Consequently, while people might spend more on hobbies, they spend less on the activities those hobbies have replaced.
Travel is becoming more expensive
Bank card data suggest that the recent rise in “hobby spending” may stem from people offsetting a “decline in travel caused by higher prices resulting from rising fuel costs”—specifically, the spike in jet fuel prices triggered by the conflict between the US and Iran. Jet fuel prices stood at $194 per barrel for the week ending September 18, marking a 116% increase compared to the previous year’s average, according to the International Air Transport Association’s (IATA) Jet Fuel Price Monitor. Airfares in the US have risen by 26.5% year-on-year.
By avoiding travel abroad, consumers can save significant amounts of money to spend on hobbies at home.
Which generation spends the most, and on what?
Older millennials spent the most money on hobbies during the three months leading up to August—more than double the amount per consumer compared to Gen Z, the lowest-spending generation.
A significant increase in per-person spending on video games was observed across all age groups during the 12 months leading up to August, with even Gen Z spending 20% more in this sector.
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