The cost of a traditional Christmas dinner in the UK has increased by the most in two years, driven by rising prices for essential ingredients, Bloomberg reports, citing new research from research company Kantar.
The average cost of a Christmas meal for four people, including sparkling wine and a frozen turkey, has jumped 6.5% to £32.57 ($41.50) in 2024, compared to last year.
Kantar’s findings highlight significant price increases for key ingredients. Potato prices have seen the most dramatic increase, rising 16.2% to £1.65 per kilogram, followed by cauliflower, which is up 14.6% at £1.18 per kilogram. Frozen turkey prices have also climbed, averaging an 8.5% increase compared to 2023.
These increases are attributed to rising costs faced by farmers, including higher employment bills and the impact of unseasonable weather. These challenges are compounded by pressure from supermarkets to maintain affordable pricing for consumers.
The report comes amid a rise in consumer price inflation, lessening the likelihood of further interest rate cuts by the Bank of England. This contrasts with the back-to-back rate hikes implemented during the pandemic. Food price inflation reached 2.6% in the four weeks to December 1st, a slight increase from the previous month’s 2.3%.
The increased cost of groceries is also impacting the UK’s supermarket landscape. Tesco has solidified its position as the UK’s largest grocer, with its market share rising to over 28%, its highest since 2017. This comes at the expense of Sainsbury’s, which holds a 16% share. Both major supermarkets have been negatively affected by Chancellor Rachel Reeves’ recent tax-raising budget, particularly the increase in employers’ national insurance contributions. Sainsbury’s has estimated this will add £140 million to its costs, potentially leading to further price increases for consumers.
Meanwhile, discount grocer Lidl continues to see strong growth, with sales up 6.6% and footfall up 10% in the 12 weeks to December 1, highlighting a shift in consumer spending towards budget-friendly options amid the rising cost of living.
