'Funflation' hits home: Why staying in isn't the cost-saver it used to be

For decades, video games have been a go-to hobby for Alyx Green. But in recent years, Green has felt priced out.

Instead of buying the biggest releases, the Illinois graduate student has opted for cheaper alternatives from smaller studios or turned to board and card games. In some cases, the 31-year-old watches videos of others playing hot games on YouTube in lieu of actually playing.

“The price has been going up,” Green said. “It's just hard to keep up.”

U.S. consumers have for years grappled with “funflation,” used to describe the sharply higher prices for live experiences like concerts or sporting events that were halted during pandemic lockdowns.

Sticker shock first felt by consumers outside the home is now following them into their living rooms. After a wave of price hikes from some of the world's largest companies, including , and , even at-home pastimes like streaming movies or playing video games are pinching the pocketbooks of consumers like Green.

Exclusive data analyzed for CNBC by shows that, as pricing pressures mounted, the average consumer pulled back on home entertainment in June compared with a year ago. That was most prominent among Gen Z and Millennial consumers, who each cut their transactions by about 4%.

“Funflation is back in 2026,” said Brian LeBlanc, PNC's senior economist.

“We're seeing that very clearly in things like travel, entertainment, concerts,” LeBlanc said. Now, “we're also starting to see it more in home leisure.”