Brits adjust Christmas spending amid rising cost of living

By Burak Bir

LONDON (AA) – Strained under price hikes ahead of Christmas, several people in the UK have gravitated towards spending less money to buy presents or to eat out compared to last year.

Early reports had predicted that UK households' spending were set to cost 65% more this Christmas due to the soaring cost of living.

According to a study by remittance tracker WorldRemit on the 2022 cost of Christmas that was published late November, British households are expected to pay £905 ($1,090) on average on Christmas this year.

Separately, a survey conducted by the research company Censuswide found in November that a third of Britons say they are adjusting their Christmas shopping plans by shopping with charity retailers.

In addition to these findings, there were reports warning people to be ready for difficult Christmas plans at a time when inflation in the UK reached record highs.

Speaking to Anadolu Agency on the effects of rising cost of living on Christmas plans, George Pirintji, a 64-year-old businessman, said this Christmas was different from previous ones due to the economic situation.

"We're trying our best, just trying to enjoy ourselves with less money," he said, adding that people are buying less presents this year.

Mentioning the increase in energy bills and mortgage rates, Pirintji said the financial situation in the country in the last few months was quite difficult.

"My mortgage has gone up by £500 a month in the last six months. So things are difficult, so we just have to be super careful."

However, Pirintji said he is hopeful that Christmas in 2023 might be more cheerful.

"But you never know what's going to happen," he added.

- 'Difficult for us to survive as normal person'

Bashudeb Saha, a 40-year-old artist, actor and commercial model, said these days are especially more difficult for self-employed people like him.

"This year everything is less compared to last year ... so difficult for us to survive as a normal person," he said, pointing out the fall in purchasing power on the one hand, and the rise in travel cost and energy bills on the other hand.

Comparing this Christmas with last year, Saha said he bought Christmas presents for many people last year, while this year he has not bought even a single gift.

"Because I'm struggling myself for the increasing price for everything," he said.

Saha also said he is hopeful for the 2023 Christmas and people will overcome the ongoing situation.

"Hopefully, fingers crossed, we'll overcome the situation and hopefully I'll make by all family members happy again for the Christmas time."

Although the annual inflation in the UK was at 10.7% in November, down from 11.1% in October, and the economy is not expected to suffer a recession this year, experts warned that there is a risk of a downturn in 2023.

On Dec. 15, the Bank of England said it expects the inflation in the UK to fall "sharply" from the middle of 2023. It raised the interest rate by 0.5 percentage point to 3.5% this month, the highest level for the UK since 2008.

A recent study released in December also showed that 63% of people were planning on Christmas cutbacks.

"Gifting was top of the cull list, with 43% plan cutting down on presents, followed by 38% who will spend less on eating out. Some 30% plan on sending fewer greetings cards, another 30% will be spending less on food – and 25% less on Christmas booze," according to a Viewsbank survey by Consumer Intelligence, a market researcher.