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Prices in the toy category increased 4.2% on a seasonally adjusted basis from August to September, according to the Consumer Price Index from the U.S. Bureau of Labor Statistics. The grouping includes toys, games, hobbies and playground equipment. The year-over-year unadjusted percent change for toys for the month of September was 6.6%, while August through September was 4.7% unadjusted. Toy prices are going up as shoppers ready themselves for the holiday season. Forty-five percent of consumers describe their household finances as insecure going into the holidays, and over 70% say saving money will be a priority this year, according to a report by Ibotta. Overall, the Consumer Price Index increased 0.6% on a seasonally adjusted basis in September, after increasing 0.4% in August. Over the last 12 months, all items increased 3.7%. Gas prices rose 9.1% in September, making up over half of the increase. The inflation report this month was “tough” and up higher than expected, according to Heather Long, chief economist at Navy Federal Credit Union. “It’s a hot inflation report and that’s not good for anyone. Americans are seeing their pay totally wiped out by inflation. That’s been the case for half a year now,” Long wrote in emailed comments. “Today’s report is another reminder that it could be a long road to taming inflation once and for all.” The U.S. toy industry had its best first-half performance in six years, according to a recent report by Circana. In that time frame, toy dollar sales jumped 17% compared to the year-ago period. "We're seeing toys increasingly function as hobbies, fandom ecosystems, and social experiences rather than traditional children's products," Kristen McLean, vice president of client insights for Circana’s entertainment knowledge group, said in a statement. "That's expanding the consumer base and creating new opportunities for manufacturers and retailers that understand how to engage collectors, enthusiasts, gifters, and self-purchasers." Adults have been a big boost for the category. In 2024, adults accounted for more toy sales than preschoolers. The cohort continued to support the industry last year and into 2026, with toys showing a strong performance among discretionary products. Shoppers have also turned away from more affordable options in favor of toys at higher price points, according to another Circana report earlier in the year. Some of the largest companies in the space are reporting increased revenues. “What we are seeing is consumers are buying toys. The toy industry is in a healthy position. And for Mattel, we are continuing to see demand,” former Mattel CEO Ynon Kreiz said to analysts this spring. In its latest earnings, Mattel reported a net sales increase of 10% year over year to $1.1 billion. The company also reported a net loss of $18 million in Q2, compared to a net income of $53 million in the year-ago period. Meanwhile, rival Hasbro reported that net revenue increased over 16% to $1.1 billion in the second quarter. Hasbro’s net income was $161.3 million, compared to a nearly $855 million loss year over year.
document fetched 2026-10-15 03:00 · canonical https://retaildive.com/news/toy-prices-jump-holiday-season-inflation/832955