The average Slovak household will pay more for this year’s Christmas purchases of food and most other gifts than last year. However, despite the Covid-19 pandemic, Slovaks do not plan to save up more for Christmas.
“We estimate that the growth dynamics of food prices will even accelerate by the end of this year,” Eva Sadovská, an analyst at Wood and Company, wrote in her memo, adding that a Slovak household will pay about 5 percent more for this year’s Christmas food purchases than last year.
Based on the most recent data of Slovakia's Statistics Office, food and non-alcoholic beverages were 3.9 percent more expensive year-on-year in October. Oils and fats were dearer, too, by almost 12 percent, and the prices of vegetables increased by more than 10 percent. They were followed by fruit (5.5 percent), milk and cheese (4 percent), bread and cereal (3.6 percent) and meat products (2.7 percent).
December is the month when Slovaks shop the most every year; sales increase between 10-40 percent compared to other months since people shop for food for the Christmas table and Christmas gifts, said Sadovská. December retail sales tend to account for up to a tenth of full-year sales.
Out of the most popular Christmas presents, computers are 8 percent more expensive compared to the previous year, bicycles 7.9 percent more expensive and jewelry 6.6 percent more expensive. Musical instruments, clothing, cameras, books, watches, as well as pet products are 2 to 3 percent more expensive. Slovaks pay 0.9 and 0.8 percent more for toys and footwear, respectively. The price tags on coffee machines are comparable to last year. On the other hand, mobile phones and sports equipment are cheaper than a year ago, by 0.4 percent and 0.7 percent, respectively.
Despite the ongoing pandemic, Slovaks are planning a generous Christmas Eve, UniCredit Bank spokesperson Zuzana Ďuďáková noted, as cited by the TASR newswire.
The bank’s survey shows that Slovaks, like Czechs, do not plan to save on gifts this year. About 55 percent of respondents are going to spend more than €200. Of these, 36 percent set their budget to €300 and another 19 percent said they were willing to spend even more this year.
Based on this survey, the age group between 45 to 53 years and the youngest group of Slovaks (18 to 26 years) plan to spend the most. The willingness to spend can also be justified by the fact that younger people tend to save less and that older generations can buy gifts for more family members, including children, parents, grandparents, and grandchildren.