Anxiety grows among Britons as ‘prices rise sharply ahead of Christmas’

Britons are growing increasingly anxious about the rising cost of living and are dining out less and shopping in cheaper stores, claims financial mutual, Scottish Friendly citing a recent survey.

With food and energy bills on the up, more than one in three UK adults are nervous they will be unable to pay for essentials, according to a survey of 2,000 UK adults, in which almost half of survey respondents admitted they were going to restaurants less frequently in a bid to save money while more than four in ten were shopping in cheaper stores and supermarkets.

The survey further claimed that four in ten Britons said they were cutting back on treats over the next three months.

An inflation rate of 4.2 per cent, the highest level for ten years, was “undoubtedly a cause of concern for some,” Kevin Brown, savings specialist at Scottish Friendly, said.

“With sharp price rises, Christmas just around the corner and expected increases in national insurance in 2022, it’s a challenging time for a large majority of Brits.

“For those that are feeling the pinch, having a really good handle on all your outgoings to prioritise the essentials and potentially cut back on other areas can help.”

The survey’s findings comes a day after analysts at Kantar revealed that price of a Christmas dinner is more than 3 per cent higher than last year, led by an increase in the price of frozen turkey, traditional puddings and sprouts. 

Fraser McKevitt, the head of retail and consumer insight at Kantar, said the increase in the cost of a Christmas dinner closely echoed that of grocery prices as a whole in the four weeks to 28 November, with inflation hitting 3.2%, the highest level since June last year. Overall inflation was driven by price rises in savoury snacks, crisps and cat food.

However, McKevitt said consumers had yet to adapt their habits to deal with higher prices.