Christmas spending rises with inflation, figures show

Christmas spending has just about kept pace with inflation as shoppers have spent less on food and premium goods, figures from Mastercard show.

Since the start of November, retail spending has risen 3.1% from a year earlier, Mastercard said. The rise is the same as the annual pace of inflation announced on 12 December.

Christmas usually sees households spending extra on food and drink but grocery sales have edged down 0.1% from a year ago. Premium items are out of favour as consumers tighten their belts: luxury sales fell 2.4% and jewellery sales dropped 5.7%.

Spending over the Black Friday weekend at the end of November rose 8%. Retailers will be hoping that underwhelming trade since then is offset by a rush over the weekend before Christmas day, which falls on a Monday.

Mastercard said: "In previous years the December rush has far exceeded Black Friday sales but this year, the pattern of spending has remained muted throughout the period, driven by higher prices, a rise in interest rates and a lack of consumer confidence."

Electrical goods bucked the muted trend with sales rising 8.9%. Consumers continued to shift their shopping to the internet with sales online rising 12%. Mastercard compiled the figures from sales activity across its payment network.