Retailers expect a record holiday spending season. But for one in 10 Americans, prices rising at the fastest pace in 30 years will dampen the Christmas spirit.

Inflation is especially taking a toll on lower-income families, who spend roughly a third of their earnings on essentials like food and energy. It’s eating into recent wage increases, and the timing couldn’t be worse after federal pandemic relief expired for about 7.5 million people.

“Anything that in the very short run puts a lot of pressure on family budgets across the board will cause more stress and damage to low-income households because they just have less scope to absorb it,” said Josh Bivens, director of research for the Economic Policy Institute.

The holiday season will lay bare inequalities in the economic recovery. That’s because a majority of Americans flush with more than $2 trillion in excess savings accumulated during the pandemic are ready to splurge on gifts and holiday trips.

At the same time, more than 11% of Americans don’t plan to spend at all, the greatest share in at least 10 years and more than double that in 2020, according to a Deloitte LLP survey. And the Salvation Army is bracing for a holiday season similar to that after the 2008 financial crisis, according to National Commander Kenneth Hodder.

Inflation has become a political lightning rod, deployed by senators like Joe Manchin, a Democrat from West Virginia, to put the brakes on President Joe Biden’s proposed $1.75 trillion social-spending package. Republicans insist the Biden administration’s agenda will further boost consumer prices, which rose at the fastest annual pace since 1990 last month.

Wages also have increased in the past year amid a tight labor market, especially among lower-paid workers. But prices are rising faster. Inflation-adjusted average hourly earnings in October were 1.2% lower than a year earlier.

There’s evidence that the end of pandemic relief has prompted former recipients making less than $50,000 annually to tighten their budgets. Average spending for those on unemployment benefits dropped 23% compared to the average in May, according to Bank of America Corp.

Nery Peña, a first-grade teacher and single mom of two in Washington, said the child tax credit and stimulus checks were a lifeline last year.

While she’s received around $500 a month since July, the next tax-credit payment due around Dec. 15 will be the last one unless Congress passes the social-spending package, and she’s already started to curb her spending.

“Food prices are going up, gas prices are going up – prices are going up everywhere,” said Peña, 27. “Thank God my daughters are understanding, but as a mom, it just sucks to tell your kids Christmas won’t be that Christmas-y this year.”

Laurie Knecht, 53, a part-time massage therapist, didn’t qualify for extra unemployment assistance, and her son is above the age limit to be eligible for the child tax credit. All of her income goes to paying the bills – bills that are rapidly rising.

“Christmas can be kind of depressing, to be honest with you. I haven’t bought anything for a long time.” Knecht said. “The bills don’t wait.”