Christmas costs have spiralled “out of control” as the economy is once again gripped by inflation. 

In October, inflation in the Irish economy was recorded at 2.9% - noticeably higher than the European Central Bank’s target of 2%. 

On Newstalk Breakfast, consumer expert Sinead Ryan explained how this will impact people ahead of Christmas. 

 “What’s pushing it up are three old favourites,” she said. 

“The food and non-alcoholic beverages; the food costs, as anybody doing a supermarket shop will testify, have really gone out of control. 

“They are punching up inflation up 4.5%, really up about a third in the last three years - which is extraordinary.” 

A family having Christmas dinner. Picture by: Alamy.com. 

Ms Ryan also noted that the October figure was also influenced by higher one off back to school costs. 

“You will recall that last year, the budget brought down the student contribution,” she added. 

“Not so much this year; people are having to pay more for that. 

“Then electricity and energy prices are up again.” 

Christmas lights on Grafton Street. Picture by: Peter Scholey / Alamy.com. 

Overall, it means that many consumers are feeling distinctly gloomy as they head into the festive season. 

“KPMG did a survey recently where people are saying that people are saying they’re going to cut back,” Ms Ryan said. 

“We’re going to buy fewer things and we’re going to buy lower priced things. 

“That includes shopping for own brand labels and maybe doing a Kris Kindle instead of buying gifts.” 

Whatever people’s intentions, Ms Ryan predicted it might not matter once those Christmas lights are switched on, as people “get into a panic” and end up overspending on gifts. 

“I think the big losers here will be on the dinner table at Christmas,” she said. 

“Turkeys because of the bird flu, but also luxuries; the cream, the butter.” 

Main image: Christmas dinner. Picture by: Shutterstock.