Australians anticipate a frugal Christmas amid inflation pressures

The 2023 Christmas Report from global data and insights firm, Pureprofile, suggests a continuation of tight festive budgets for Australians, reflecting ongoing inflationary pressures and financial constraints. The annual report provides a global perspective on holiday spending patterns, incorporating the opinions of 4,500 panel members from Australia, New Zealand, the UK, the USA and Singapore.

Pureprofile's study indicates that 65% of Australians anticipate spending less this Christmas, along with an expected reduction in the number of gifts purchased, with 42% of respondents planning to buy fewer presents compared to previous years. This marks the second consecutive year that holiday gift budgets have diminished.

In the domain of festive food and drinks, a frugal approach also prevails for this year's Christmas period. A notable 43% of participants are looking to minimise their expenditure on groceries, showing a consistent year-on-year increase from 28% in 2021 and 37% in 2022.

The report offers additional insights into the Australian Christmas landscape. Firm favourites such as gift cards continue to dominate festive giving, with almost half of Australians (47%) opting for this versatile present, and 44% indicating their preference to receive them.

An introspective holiday season seems to be the trend this year with 60% of Australians planning to stay local. Only 33% of respondents are considering travel within their state or interstate, possibly reflecting the financial stresses many are facing.

Constraints on festive spending also extend to the corporate world with 45% of Australians predicting careful cost management for workplace Christmas parties. An impactful 24% are even preparing for the possibility of their workplace foregoing a Christmas celebration entirely this year.

These findings provide a illuminating snapshot of the current festive spending trends amongst Australians, evidencing a sharp focus on financial prudence. As households and companies alike navigate the economic challenges posed by inflation and financial pressures, it seems that a quieter, simpler Christmas period is on the horizon.