Holiday shopping might just break your bank this year
You're in for a hefty bill this Christmas, as chocolate and other essentials cost a small fortune - more than ever before! While some items such as toys have seen less of a price hike, food, and drinks are shockingly expensive, with an average increase of 6.1% compared to last year.
As people across Germany scrabble for cash, 50% of workers receive a Christmas bonus, especially if they're covered by collective agreements. However, it's not all cheer as people are only planning to spend an average of €304 more on presents compared to 2022. A significant decrease from the pandemic years when people splurged €320 each on gifts.
In fact, around one-third of people are planning to cut back on gifts, and 25% expect to spend more. Those with kids will be relieved to learn that toy prices have actually risen less than overall consumer prices. According to data from the Federal Statistical Office, toy prices remained roughly the same in October 2023 as they were in October 2022. Yet, with an overall inflation rate of 6.9%, you’d think toys would be exponentially pricier.
The only downside to this good news is the cost of Christmas food, which has skyrocketed. With food prices jumping by 29.3% compared to 2022, it looks like three-quarters of households on a tight budget are going to have to tighten their belts. It's hard to ignore food prices when they almost tripled since 2020, which was already a pricey year.
Meat lovers may find some solace in the fact that there's been a slight decrease in meat prices, as they rose by only 4% compared to a 19.3% increase in 2022. Even with this decrease, the average price jump for a Christmas roast has likely made shoppers think twice before heading to the supermarket.
However, the biggest concern might just be chocolate; it doesn't seem to be taking a break from its unending price increases. Chocolate costs a whopping 13% more in October than it did in 2022, making it slightly more expensive than meat. And, compared to 2020, chocolates are now almost a third more expensive.
As for Christmas trees, you might be pleased to hear they'll only cost around €36.70, on average, according to the Federal Association of Christmas Tree Producers. A tiny 5.5% increase from last year. The association estimates the current price range for a Nordmann Fir - the most popular tree in Germany - to be between €21 and €29 per running meter. But be warned, some trees are cheaper, as you can get a blue spruce tree for as little as €13 to €18 per running meter.
Good to Know
- Global Cocoa Prices: Cocoa prices have soared to an all-time high of $10,500 per tonne in 2023. This is a major increase from the 2022 average of $2,500, attributable to climate change, diseases, and supply chain disruptions in West Africa. The impact on chocolate manufacturers has resulted in the potential for increased shelf prices[4].
- Mondelez CEO’s Predictions: Mondelez CEO, Dirk van de Put, has predicted the cost of chocolate to increase by up to 50% due to the surge in cocoa prices. This could equate to a significant amount in your Christmas shopping list[2].
So, even though other items haven't seen such drastic price increases, you might still have to watch your pennies when it comes to chocolates and Christmas classics like the Christmas roast. No doubt, you'll be counting the cost long into the New Year.
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