PHILADELPHIA (CBS) — Thanksgiving Day in Philadelphia means Christmas Village is back at LOVE Park. There was so much excitement in the air for the 14th annual Christmas Village Thursday afternoon.

People packed inside the open-air German Market early in the morning. Some having their pictures taken in front of the ‘I Heart Philly’ sign.

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Dozens of venders including international and local ones selling gifts and decorations and ornaments.

The smells were also impressive; people ate German food and sipping on hot chocolate. Many families from the Delaware Valley came out Thursday morning, but some are visiting from out of state, like one couple from Boise, Idaho.

“We love it. This is actually a return trip for us. So we really love it here. Made it a point of coming back here,” Kyle Stevens told CBS3.

“It’s just happiness,” Erica Lynn from West Philadelphia said. “You see all these people around you don’t really see, and it’s just good times, really.”

But among the beautiful ornaments and international gifts and decorations being sold, shoppers may also notice some items have much higher prices.

For example, a $55 poncho being sold is about $10 more than last year, according to the owner of Janette’s Designs.

“Because the shipping costs from everywhere,” Janette Paz said.

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Shoppers told CBS3 that means they have to be extra choosy when buying holiday gifts.

“It does make me worry a little bit,” Lynn said, adding, “So just got to budget a little bit better.”

Vendors here at Christmas Village aren’t alone.

The owner of Tildie’s Toy Box over in South Philadelphia said inflation is driving up costs and customers may have to dig a little deeper in their wallets to buy certain toys.

“I think if they paid very very close attention I think they would notice a dollar increase here or there,” owner Michelle Gillen-Doorbrah said, adding, “We have had to raise our prices, unfortunately.”

But the chair of LaSalle University’s marketing department tell us despite higher prices, retail sales are still expected to climb this holiday season.

“There’s also every indication we’re gonna have a strong Black Friday through Cyber Monday, the whole weekend,”  Swee-Lim Chia, Ph.D. said. “Some of that is just pent up demand.”

He said it’s just too early to say when prices could start to level off or drop.

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Christmas Village runs through Christmas Eve.