Cost of living WIN as price of turkey Christmas dinner drops with 'retailers pulling out all the stops'

The figures come from market research group Worldpanel by Numerator, which monitors supermarket prices.

The reduction follows a 6.5 per cent rise in the cost of Christmas dinner the previous year.

The small decline offers a contrast to the broader trend of food price inflation that continues to outpace general inflation.

Frozen turkeys accounted for the largest saving, with the average price now £13.52, down 3.6 per cent year on year.

Parsnips were the only other component to fall in price, decreasing 0.4 per cent to 71p. These two items were responsible for the overall decline in the total cost of the Christmas meal.

Other items in the festive basket increased in price. The data covers the four weeks to November 30.

Cranberry sauce recorded the steepest rise, increasing 10 per cent to an average of 86p.

Stuffing mix rose seven per cent to 96p, while carrots increased six per cent to 52p.

Gravy granules increased five per cent to £2.23. Cauliflower and Brussels sprouts rose four per cent each to £1.22 and 92p respectively.

Sparkling wine increased two per cent to £6.51. Potatoes and Christmas pudding rose one per cent to £1.67 and £3.34 respectively.

The rises reflect broader trends across the grocery sector. Chocolate confectionery prices were up 18.4 per cent, driven by record cocoa bean prices following poor harvests in West Africa.

Supermarkets have increased promotional activity as they compete for seasonal spending.

Worldpanel said 31.2 per cent of all grocery spending is now on discounted items.

This compares with 30 per cent at the same point last year. Grocery price inflation remained at 4.7 per cent in the month to November 30.

This compares with the official inflation rate of 3.6 per cent.

Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: "Retailers are pulling out all the stops to win shoppers over as they gear up for one of the most important trading periods of the year".

Worldpanel said one in five people reported money difficulties, a proportion that has remained largely unchanged for two years.

Mr McKevitt said: "With the cost of living still biting for many this Christmas, just under one third of all spending is on promotion as supermarkets find ways to shield shoppers from the impact of price rises."

Premium own-brand items remain popular with shoppers.

These products now represent £1 in every £20 spent in supermarkets.

Worldpanel forecasts that December grocery sales will surpass £13.6billion.

The busiest shopping days are expected to be December 22 and 23.

Retailers are preparing for high footfall and strong demand during the peak trading period.