Graduation gifts cost more this year as inflation squeezes families

For families paying for both Mother’s Day and graduation, the easiest answer is no longer the fanciest one. Restaurant tabs, groceries and airline fares have all climbed, and the Bureau of Labor Statistics said consumer prices were up 3.8% annually in April, the sharpest rise since May 2023.

That squeeze lands right in the middle of graduation season, which has become a major spending event all on its own. The National Retail Federation has tracked graduation shopping since 2007; in its 2025 survey, 36% of respondents planned to buy a gift for a high school or college graduate, and total spending was expected to hit a record $6.8 billion. Cash remained the top gift, which is usually the clearest sign that people want flexibility more than fuss.

The smartest way to handle the double-celebration squeeze is to combine where you can and downscale where you should. One meal can serve both occasions. A single envelope of cash can cover the graduate. A bouquet, a loaf of bread or a box of cookies can cover mom without adding another restaurant bill. CNBC said 65% of consumers felt price increases were outpacing income, and many were already cutting back on dining out and groceries, so the costlier mistake this year is pretending both holidays need their own full production.

Local shops are already adjusting to that reality. At Fallon's Flowers in Raleigh, general manager Frank Campisi said fuel costs have ticked up, but the shop has kept good pricing and has “specials for Mother's Day, all different price points to help accommodate any customer's budget.” For graduation, Great Harvest Bread Company Raleigh has a gift of jam and bread for $17.75, a Sweet ‘N Simple bag for $18.95 and a Good Luck Gift Bag for $32.50; its gift cards work in any dollar amount. Southern Sugar Bakery in Raleigh has graduation cookies too, with custom photo cookies from $35 and an all-occasions cookie box at $60, which is the better splurge when the graduate is the one you want to spotlight.

The numbers explain why this is the year to be strategic. Food service purchases are 3.8% higher, grocery store purchases are up 1.9%, airline fares have jumped 14.9%, and gas is rising too. The families that get through May happiest will be the ones that trim the excess, keep the gesture meaningful and spend on the part of the celebration that actually matters to the person receiving it.