Christmas has always been an overly expensive time of the year for
many, and unfortunately it doesn’t look as if that is going to change anytime
soon. While we entered December with the positive news of decreased income tax
and an increase in national pay, we were greeted by a 3.1% rise in inflation.
The cost of living is now at its highest it has been in 6 years and is outstripping
wages, which have only seen an 2.2% estimated increase.
Many families are already experiencing the harsh repercussions of the
Brexit referendum, and a rise in the cost of living just before the most
expensive time of the year is not something anyone needs. This could mean that
new smartphone or tablet you want, may need to wait longer as these devices
have witnessed a 6.7% increase in price since the referendum due to most goods
being imported from abroad and the devaluation of sterling.
Also taking a financial hit will be our Christmas dinners due to the
overall price of food witnessing a 4.2% increase during November. Christmas dinner staples, like the Christmas
pudding, which has increased by 7.7% compared to last year and the
controversial brussel sprouts increasing by 8.4% in price, will all be
contributing to a pricier shopping bill for families this year.
Much like food, gifts are a staple on this festive day and Black
Friday seemed to be a great opportunity to stock up with different Christmas gift ideas, from modern gadgets and gizmos to socks. Despite
the aforementioned increase in inflation, Black Friday saw shoppers defying the inflation increase with a 1.1% rise in the quantity of goods
purchased last month, compared to October. John Lewis reported a 7.2% record number of sales, compared to this time last year, in
beauty, fashion and electrical departments.
However, what is interesting to see is this year is predicted to be the first £1bn Boxing Day. Even though tradition tells of people
heading out in their masses on Boxing day, this year could see a deviation away
from the usual trend. There have previously been petitions to close shops on this hectic retail day to enable workers to spend more quality time
with their families, however, Boxing Day in 2016 witnessed a 7.3% decrease in
high street sales. This year we are expected to browse and buy more online from
the comfort of our own homes as mobile transactions are predicted to make up
for 40% of overall sales.
However, there is a light at the end of the tunnel as these increases are expected to fall as we move into 2018. The November boost
to basic pay and reduction in income tax was said to help beat the overall growth
in inflation. Although, many feel this has not helped, but some of my fondest
memories are from purely spending Christmas with my family and we should not
let these political factors impact the most festive, fun and joyous time of the
year.
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