Christmas is all about consuming. This can be food, drink, presents and so on and so forth. But we wonder how the price of Christmas in 2016 compares to that in 2015. Well, read on to find out.
On average it is estimated that the typical household will spend an extra £500 this Christmas. This hike is because of the pound dropping since the 23 June referendum. Of course, this is leading many to stretch their festive fund. This is not helped by the fact that everything from turkey to Christmas puddings has gone up in price. This is largely due to the fact that British firms are now having to pay more for imports. It is estimated that the manufacturers’ cost is now up to 13%, which is the highest rise for 5 years. This rise in inflation is set to increase at a faster pace next year. However, a number of retailers are choosing to not increase their charges and instead take a hit to their own margin.
However, it is not all doom and gloom. Food prices are estimated to be lower overall compared to last year. This is with the help of a supermarket price war and supermarkets, such as Lidl and Aldi, helping to keep grocery prices low. Alcohol, such as wine, beer and spirits, are also all cheaper now than they were a year ago. You may have heard the news of the new Toblerone, which now has bigger gaps to decrease the bar’s weight. This is an example of shrinkflation, where manufacturers are shrinking their products and charging the same price. Shrinkflation is something that all shoppers should be aware of, as this practice is set to increase. The specific items that have increased this year, compared to this time last year, are Christmas puddings (+21%), Christmas jumpers (+0.9%), pigs in blankets (+21%) and even a lump of coal has increased by 2%.
We hope this news doesn’t make you feel like a Scrooge this year.