With Christmas and Boxing Day in the rear-view mirror, consumers have one event left to take stock of how much they're willing to spend: New Year's Eve.

A Deloitte Canada study in October found that average household spending would fall 11 per cent year over year during the holidays due to persistent financial pressures.

Vivek Astvansh, a marketing professor at McGill University, says a range of reasons could make Canadians think twice about indulging in lavish celebrations, from pocketbook woes to COVID-19 concerns and even angst about armed conflict abroad.

He says ongoing inflation will likely convince many to opt for smaller, less expensive private gatherings, whereas those still inclined toward a bar or restaurant outing might choose a more affordable venue.

Looking beyond Dec. 31, Astvansh speculates that New Year's resolutions will spur personal spending, including gym memberships and course enrolments, as Canadians look to start afresh despite continuing cost increases.

In November, the country's inflation rate held steady at 3.1 per cent, with higher prices for recreation and clothing in particular.

This report by The Canadian Press was first published Dec. 29, 2023.