‘Big win for families’: Aussies tipped to pay less to feed family over Christmas as checkout prices fall

Falling prices at the checkout mean Aussie families are tipped to pay slightly less for Christmas BBQ favourites this holiday season, according to new research.

Falling prices at the checkout will mean Aussies are tipped to pay less to feed the family at Christmas – but it only marks a slight drop as the country’s food inflation outpaces the rest of the world.

A study by eToro looked at local supermarket prices of traditional Christmas cuisines, including barbecue staples, in Australia and found households will now pay an average of $80.30 this Christmas to feed a family of four.

This is only a 1.6 per cent reduction in grocery prices compared with 2023.

The same study found overall food inflation in Australia continues to outpace other parts of the world.

Aussies are tipped to spend less during this Christmas period. Picture: NewsWire / Nikki Short

eToro market analyst Josh Gilbert said Australian food inflation came in at 3.3 per cent for the year, above the EU and the US which recorded a 2.4 and 0.1 per cent increase in food costs this year.

“It’s a difficult period for households in Australia – budgets are being squeezed with rates remaining elevated and set to stay there,” Mr Gilbert said.

“However, not having to pay more on Christmas Day is a big win for most families.

“It’s hopefully the beginning of things getting a little easier in 2025, especially with our view that the RBA will begin to loosen their tough stance and lower rates next year.”

The study conducted by eToro is based on grocery data was collected in December 2024 based on Coles Brand Ingredients.

This comes as the two major supermarkets face allegations from the Australian Competition & Consumer Commission (ACCC) for misleading specials.

The ACCC said Woolworths did this for 266 products in its Prices Dropped promotion over a period of 20 months, while Coles did it for 245 products in its Down Down promotion across 15 months.

Although Aussie consumers will still be spending more on certain BBQ items this year, these changes are minimal compared to the price hikes Aussies faced last Christmas.

In 2023, families of four were paying up to 30 per cent more year-on-year, with inflation on food putting further pressure on families budgets.

eToro says the falls in Christmas food shopping could be an early indicator of easing inflation.

The price of the average Australian Christmas dinner is falling according to eToro as of December 11. Picture: Supplied

Falling wholesale prices for chicken skewers and corn on the cob offset rises in prices for staples such as pork sausages, lettuce and the price of bread.

Unfortunately for households, popular items including prawn skewers came in at $13.60, the same price as 2023.

The stability in Australian grocery prices in contrast to many other countries which are seeing price increases across the board this Christmas.

Elsewhere, UK families are facing the biggest price hike, with the price of a turkey and the trimmings skyrocketing by 36 per cent to €44.61 ($73.34 AUD), up from €32.80 ($53.92) in 2023.

While the price of Christmas is falling in Australia, it is rising in much of the rest of the world. Picture: NewsWire / Jeremy Piper

Families in Spain will have the most expensive Christmas based on the study with a typical Spanish Christmas meal of stuffed turkey alongside trimmings will cost €67.07 ($110.26) for a family of four. Despite spending the most, Spain still has one of the lowest price increases, only up 1.6 per cent year on year.

Meanwhile the UK has become one of the most expensive countries for Christmas dinner this year, with rising turkey prices attributed to increased production costs and inflationary pressures impacting British farmers.

UK residents are tipped to spend 36 per cent more for their Christmas meal in 2024.