Rampant inflation robbed shoppers of purchasing power over the festive period.
Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “Rampant inflation robbed shoppers of purchasing power over the festive period. For many, the desire to revel in the festivities following years of Covid-disrupted Christmases was curtailed by the need to tighten belts to remain financially buoyant.
“The fall in retail sales in December after a unexpectedly strong showing in November suggests that many people stocked up for Christmas early this year.
“Christmas is typically a time of excess, and many budgets will still be reeling from spending on presents and festive treats. But inflationary pressures haven’t gone away during the festive period. The latest figures shows that food prices remain on the up, while household energy costs are set to rise in spring when the energy price cap increases, with the average annual bill set to rise from £2,500 to £3,000.
“The perfect storm of high inflation and the spectre of higher interest rates means shoppers will likely continue to reshuffle their spending priorities and allocate more of their budget on everyday essentials."
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