Analyst: Slovak Households to Pay More for Christmas Gifts and Food This Year

Bratislava, December 2 (TASR) - Slovak households will spend some 8-10 percent more on purchasing food for Christmas this year than they did in 2022, said WOOD & Company analyst Eva Sadovska earlier this week based on data from the Statistics Office. "Retail sales between October and December make up as much as 28 percent of those for the whole year. Almost all segments of retail record above-average sales in the final quarter of year. The end of the year brings higher turnovers primarily to sellers of electronics, electrical goods, furniture, toys, sports equipment, but also cosmetics, clothing and, last but not least, food and beverages," stated Sadovska. According to Eurostat data, musical instruments are more expensive than last year as well, by 7.7 percent, while jewellery is 7 percent more costly than a year ago, said Sadovska. Clothing is 5.7 percent more expensive than in 2022 and books 5.4 percent. Customers will pay 2-4.5 percent more for cameras, coffee machines, computers, sports accessories, footwear, bicycles and toys. The data shows that phones and watches have seen the slowest price growth among typical Christmas gifts, going up by 1.6 percent and 1.1 percent, respectively. Pet products have recorded a significant price increase of 22.7 percent year-on-year (y-o-y). "Compared to last year, there has also been a change in the so-called deferred consumption effect. Slovaks used 'forced savings' - money that they saved during the lockdowns in 2020 and 2021 - for Christmas but also other purchases last year. This savings buffer has been exhausted this year, which is partly reflected in weaker household consumption," explained the analyst. Conversely, the consumer confidence indicator in October improved month-on-month to reach its highest level since the second half of 2021, stated Sadovska. ko/df/am