Christmas Dinner Costs Soar: Is the Traditional Feast Becoming a Luxury?
A classic Christmas roast for ten people now clocks in at around $200 – a 7% jump from last year. But that’s just the beginning. As energy prices surge and ingredient costs continue to climb, the question isn’t just if Christmas dinner is getting more expensive, but whether the traditional festive feast is becoming financially out of reach for many New Zealand families.
The Rising Cost of Festive Staples
Infometrics, a leading economic analysis firm, has been tracking the price of a Christmas meal for several years. Their latest data reveals a worrying trend: the cost of everything from meat and vegetables to dessert toppings is increasing at an alarming rate. Christmas dinner costs are being driven up by a perfect storm of factors, with energy inflation playing a particularly significant role.
According to Infometrics’ chief economist Brad Olsen, electricity prices are up 12% year-on-year, reaching levels not seen since 1989. However, it’s gas prices – up a staggering 17% – that are hitting barbecues particularly hard. “Just turning the barbecue on gets expensive, before you get into what you’re putting on it,” Olsen notes.
Roast vs. Barbecue: A Cost Comparison
Infometrics analyzed two common Christmas meal scenarios: a traditional roast and a barbecue. A roast meal for ten, including lamb, pork, ham, and all the trimmings, now costs approximately $200, rising to $275 with the addition of entrees and dessert. A barbecue, featuring steak, lamb chops, and sausages, comes in at $300 for the core meats, or $380 with sides and dessert. This represents an increase of $30 to $57 across the board.
While $30-$57 might seem manageable for some, it represents a substantial portion – or even the entirety – of a Christmas meal budget for many households. The impact is particularly acute given the broader economic pressures families are facing.
Meat Takes the Biggest Bite
Meat remains the single largest contributor to the rising cost of Christmas dinner. Sirloin steak now exceeds $45 per kilogram, while roast lamb and lamb chops are priced at $25 and $23 per kilogram respectively. However, savvy shoppers can mitigate some of the cost by opting for more affordable alternatives.
“You can get a number of chicken items for anywhere between $7 and $16 a kilo, so considerably lower, and a roast pork, at the moment you can get that for $13 a kg,” Olsen suggests. This highlights the potential for strategic menu planning to reduce overall expenses.
Beyond the Main Course: Dessert and Decorations
The cost increases aren’t limited to the main course. Dessert ingredients are also becoming more expensive. Egg prices, a key component of pavlova, have risen by 12% in the past year, now costing around $4.69 for the quantity previously purchased for under $3 just two years ago. Even seemingly small additions, like kiwifruit (up 44%) and sultanas (up 31%) for Christmas pudding, are contributing to the overall price hike.
Looking Ahead: The Future of the Christmas Feast
The escalating cost of Christmas dinner isn’t a one-off event. It’s a symptom of broader economic trends, including global supply chain disruptions, rising energy prices, and inflationary pressures. These factors are likely to persist, meaning that Christmas feasts will likely continue to become more expensive in the years to come. Statistics New Zealand provides ongoing data on food price inflation, offering further insight into these trends.
One potential shift we may see is a move away from traditional, elaborate meals towards simpler, more affordable options. Families may opt for smaller gatherings, potluck-style dinners, or focus on less expensive cuts of meat and locally sourced produce. The emphasis may shift from quantity to quality, with a focus on creating a meaningful experience rather than an extravagant spread.
Furthermore, the Christmas season’s impact on household finances extends beyond food. December remains the biggest spending month of the year, driven by gift-giving and Boxing Day sales. This added financial strain exacerbates the pressure on families already grappling with rising living costs.
What strategies will you employ to navigate the rising costs of Christmas this year? Share your tips and ideas in the comments below!
