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Price pressure is intensifying in hobbies and leisure

Funflation, or rising costs for entertainment and leisure activities, is pointing to a new trend in U.S. consumer spending. According to a Bank of America analysis, spending on hobbies rose 7.9% year over year in August 2026.

At the same time, the number of transactions increased by just 3.4%. That suggests consumers are not only buying more hobby goods, but also paying higher amounts for them.

Which areas are showing gains?

  • According to data from the U.S. Bureau of Labor Statistics, the recreation index rose 2.7% over the 12 months through August.
  • Sales at sporting goods, hobby, musical instrument and book stores increased 10.7% over the same period, according to the U.S. Census Bureau.
  • Total U.S. retail and food services sales rose by 6%.

As travel costs rise, spending shifts to local activities

Bank of America analysts said card data suggest the recent rise in hobby spending may partly be linked to a pullback from travel. According to the analysis, higher fuel costs and jet fuel prices that rose after the U.S.-Iran war are steering consumers toward activities that can be done at home or nearby instead of more expensive trips.

According to the International Air Transport Association's Jet Fuel Price Monitor, jet fuel cost $194 per barrel in the week ended September 18. That level was 116% higher than the previous year's average. Federal data also showed that U.S. airline ticket prices rose 26.5% year over year in August.

Economists note that when price pressure rises, consumers tend to substitute between activities. In that context, hobbies done at home rather than vacations, or activities spent at home instead of eating out, can move to the forefront.

The gap widened across age groups, with video games standing out

Morningstar analyst Dan Wasiolek said the Covid-19 period accelerated the shift from spending on goods to spending on experiences. Although consumer confidence and savings remain under pressure, higher-income households have continued to travel, while a broader group of consumers also kept spending during the summer.

According to a PWC survey in April of more than 2,000 adults, consumers planned to spend an average of about $2,900 on summer travel. Seventy-one percent of respondents said they expected to spend the same amount or more than last summer.

Bank of America data show that over the three months through August, older millennials spent the most on hobbies, with per-capita spending more than twice that of Gen Z. Video game spending also increased across all age groups over the past 12 months, rising by 20% even among Gen Z, where the increase was the smallest.

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