Brits are likely to cut spending this festive season as Christmas costs are set to soar, a survey by investment bank JP Morgan has found.
The bank said Black Friday spending was down 45% against 2021, with three-quarters of the 20% who spent more planning less shopping than usual for December.
“Switching to discounters for grocery shopping was muted, while the outflow from Marks & Spencer remained material” added the bank
B&M has benefited from customers switching to cheaper alternatives for gifts, with the bargain retailer and Tesco the ‘likely winners’ of the winter period.
One consequence of higher prices is that sales might hit record levels this month as supermarket price inflation in December is set to soar with Christmas dinner staples up by 18% in the last year according to the Trades Union Congress (TUC).
For a family of four, a Christmas dinner is expected to cost £89.11 or £9 more than 2021.
“Soaring food and energy prices mean many families will struggle to afford the festivities. And the fact is, many workers are dreading the new year” Frances O’Grady, TUC general secretary stated.
Even if global inflation is peaking, shortages are likely to spike food prices further.
Food supply is likely to reach a ‘crisis’ point as crops such as tomatoes are expected to return record low yields mirroring the egg issues seen last month, warned the National Farmers Union.
“Supermarkets source, and will continue to source, the vast majority of their food from the UK and know they need to pay a sustainable price to farmers” said NFU president Minette Batters
Some sectors are benefiting. As Brits continue to scrimp and save over the festive period, soaring energy costs may be counteracted by one of the most popular innovations of recent times, the air fryer.
Air fryers are the cheapest to run appliance, using an average of 18p less on energy than an oven, a Which? survey has found.
Demand for air fryers rocketed by 3000% last month price comparison site PriceRunner found, having jumped by 80% in October.
There’s been an influx of XL fryers ahead of Christmas, US producer Masterbuilt are selling a $129 air fryer that can accommodate an 18-pound turkey.
Amazon has shown interest in the market, integrating air fryers with Alexa, Phillip’s Airfryer XL Connected will now cook when using voice commands.