Christmas Dinner Costs

Data from Assosia has suggested that a typical Christmas dinner will cost less this year than last. With the survey tracking costs from Tesco, Sainsbury’s, Asda, Morrisons, Aldi and Lidl, the data suggested that turkey prices have eased 5.9% while brussel sprouts have fallen as much as 12%. Gravy prices also fell 6% while sage and onion stiffing mix dropped 3.8%.

The data didn’t entirely make for festive reading however, with potato prices up 26.2% and carrots costs up 13.4%. The rise in costs of potatoes in the UK, reflects a global trend, which has been impacted by higher production, labour and storage costs in addition to machinery expenses which have also risen. Furthermore, according to North-Western European Potato Growers forecasts suggest that yields across Europe could be as much as 9% lower compared to last year.

It’s also worth noting that the data differs from Kantar’s findings which suggested that the typical cost of a Christmas dinner will be 6.5% more expensive than 2023. This accounts from the 4.4% increase in Christmas puddings, 9.9% increase in cranberry sauce, 12.7% rise in parsnips and 14.6% uptick in cauliflower.

Unlike Assosia, their data indicated that turkey prices have risen 8.5% rather than falling 5.9%.

This morning’s Rightmove House Price Index indicated that new seller asking prices fell 1.7% on a month-on-month basis, while rising 1.4% on an annualised basis. This makes the average new seller asking price £366,592 and marks the second consecutive month where prices have fallen more than the seasonally adjusted average.

According to Rightmove, the drop likely reflects “pre- and post-Budget jitters” while also noting that the housing market remains “price-sensitive, and seller competition is at its highest level for a decade”

Looking ahead, the survey said that affordability may take longer to improve than previously forecast given that the pace of easing from the BoE is now expected to be slower.

Nevertheless, some positivity was shown with the number of sales being agreed up 26% from last year.

Commenting on the data, one Director at Rightmove said that “The speed at which mortgage rates come down next year will be key in determining activity levels for some of the market’s traditionally busiest periods, and sellers will still need to price temptingly enough to secure a buyer while the choice of homes for sale remains as high as it is right now.”

This morning’s data from Rightmove follows the Nationwide House Price index indicating that house prices rose 1.2% on a monthly basis for November. This comes as annualized prices rose 3.7%, which given the jump from the 2.4% figure recorded in October was the greatest increase since November 2022.

Here, the survey said that “Housing market activity has remained relatively resilient in recent months, with the number of mortgage approvals approaching the levels seen pre-pandemic, despite the higher interest rate environment.