Christmas budgets shrink as 45% of Brits spend less on food and drink

Spend on food and drink this year is to see a drop of 25% since last year as 45% of Brits look to cut costs as a result of the cost-of-living crisis.

The new research by global data and insights company Pureprofile based on a sample of 1,023 panel members, found that the average Christmas food and drink budget has dipped to £207, in comparison to £212 last year.

As 39% said increased financial costs is their biggest concern, 33% will look to buy cheaper food alternatives.

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“The UK has seen some challenging Christmases over recent years, and while we share a sense of optimism for the festive season this year, there is an underlying sense of financial uncertainty giving rise to feelings of caution,” Pureprofile managing director UK, EU & US, Tim Potter said.

“The cost-of-living crisis and rising interest rates have meant many families have already had to reassess their finances and cut back on spending.

“Brits will be prioritising food that offers more for their money and stretches budgets that little bit further. Similarly, the gifts we choose will likely be more considered and functional as we become more cost-conscious shoppers this season.

He added: “Although we’re seeing shopping commencing earlier this year, retailers will still need to consider consumer mindsets and provide real value for money to meet smaller budgets.”

This comes as food prices pushed inflation back to the 40-year high seen in July last month, according to data from The Office for National Statistics.

The Consumer Prices Index inflation for September reached 10.1%, rising from 9.9% in August.

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