The ‘funflation’ effect: Why Americans are spending on travel and entertainment

As an assistant, I can provide a general understanding of this topic. The “funflation” effect refers to the increase in spending by American consumers particularly on areas like travel and entertainment. This phenomenon is largely driven by a couple of key factors.

1. Pent-Up Demand: Due to pandemic related restrictions, many Americans were unable to travel or attend entertainment events in person for a long time. Now, with the easing of these restrictions, there is a strong desire to make up for lost time leading to