Kantar Worldpanel, a firm that tracks the sales and prices of supermarket chains, revealed that the average main meal for a family of four costs £31.71.
The typical dinner consists of frozen turkey with vegetables like potatoes and sprouts, along with a Christmas pudding, which was 1.3% higher compared to last year.
Although the figure is substantially lower than the UK’s inflation rate, which is currently at 5.6%, the price of the Christmas dinner item, cranberry sauce, was 26% more expensive than last year.
Sparkling wines, sprouts, and pudding are cheaper compared to last year.
As per the report, the pre-holiday discounts were aimed at securing customer loyalty for the big Christmas shop, which was the reason for easing grocery inflation over the four weeks to November 26.
Grocery inflation stood at 9.1% compared to the previous month, which was 9.7%.
The report also revealed that for the first time over Christmas, the supermarket chains collectively made more than £13 billion due to the price increase we were being asked to bear.
The head of retail and consumer insight at Kantar, Fraser McKevitt, revealed: “The scene is set for record-breaking spend through the supermarket tills this Christmas.”
“The festive period is always a bumper one for the grocers, with consumers buying on average 10% more items than in a typical month.”
“Some of the increase, of course, will also be driven by the ongoing price inflation we’ve seen this year.”
“While the rate at which grocery prices are rising is still well above the norm, the good news for shoppers is that inflation is continuing to come down.”
Fearing that the cost of living might impact the household, the British Retail Consortium (BRC), an industry body, released a report from Kantar expressing concerns regarding overall sales volume in the leadup to Christmas.
The BRC revealed that positive signs regarding spending in early November did not hold for the month despite the early Black Friday discounts; the overall sales volume was as high as those during the sales at COVID lockdown levels.
The total sales by value were 2.7% more than the previous month, easily leaving behind the inflation rate.
Although food and drink, beauty, and personal care products continued to grow, sales of watches and jewelry on the high street saw the biggest decline.
BRC chief executive Helen Dickinson stated: “Black Friday began earlier this year as many retailers tried to give sales a much-needed boost in November.”
“While this had the desired effect initially, the momentum failed to hold throughout the month, as many households held back on Christmas spending.”
“Retailers are banking on a last-minute flurry of festive frivolity in December and will continue working hard to deliver an affordable Christmas for customers so everyone can enjoy some Christmas cheer.”
Nonetheless, it is not bad news for retailers or the economy as a whole.
However, data released by Barclays revealed that from April to last month, there was a sharp increase in spending on non-essential items, reaching its highest peak. The data also revealed that there was a strong demand for fashion on the high street.
- Published By Team Timeswire