Christmas spending is set to reach record levels this year amid equally record-breaking grocery inflation.
Latest figures from Kantar reveal that grocery price inflation has hit 14.7%, the highest level since Kantar started tracking the figures and higher than the UK’s grocery inflation levels.
The results are based on statistics for the 12-week period ending on November 27, and inflation during that time was 14.7% higher than it was during the same 12-week period a year prior.
It indicates that Irish consumers spent €132 million more this year than they did the year before.
In the meantime, according to Kantar, rising inflation and holiday spending will cause grocery sales to reach €1.25 billion for the first time in December, with the 23rd of December expected to be the busiest day for pre-Christmas shopping.
A classic Christmas meal for four people cost €41.58 elsewhere, an increase of 7.9% from the previous year.
Additionally, according to Kantar statistics, sales of own-label brands increased by 9.6% during the previous 12 weeks.
Sales of value own label ranges have increased the most over the past year, up 29%, while sales of premium own label ranges increased 5.1%.
Senior Retail Analyst Emer Healy works for Kantar.
For many people, she said, "the impact on shopping budgets is unavoidable."
She stated that the "average annual food expenditure is likely to grow from €7,037 to €8,071, an extra €1,034 a year" with inflation at 14.7%.
Healy does add that despite challenges from inflation and other factors, consumers are still stocking up on holiday favourites.
"They spent an additional €1.2 million on gifts and chocolate boxes, totaling €3.5 million, in the past 12 weeks."
Healy added that people spend €617,000 on mince pies and more on savoury snacks.
But she noted that “not all festive favourites are proving popular, with shoppers spending €189,000 less on brussel sprouts”.
.jpg)
