Cost of Christmas dinner was 7.5% more expensive than last year

Figures from the Office for National Statistics (ONS0 have suggested that Christmas dinner this year will have cost 7.5% more than it did last year for most families.

The ONS looked into the prices of 22 items which typically appear in a Christmas dinner and how they had changed over the last year. The prices were derived from the prices that are used to calculate inflation every month.

Only three items on the list actually fell in price over the year: potatoes, carrots and double cream. The rest either rose or stayed at the same price, with the costs of red wine and cakes particularly impacting on the overall cost of a Christmas dinner.

The price of turkey had risen by 3.8% to £8.15 per kilogram, although this is based on the costs of turkey steaks, rather than the cost of a whole turkey. The costs of bacon and pork sausages also rose, adding approximately 6% to the costs of making ‘pigs in blankets’.

Wine has also gone up in price since last year. A bottle of new world white wine went up by 8.1%, whilst Champagne rose in price by 8.6%. Old world red wine went up in price by a hefty 14.2% per bottle when compared to last year. The cost of ground filter coffee went up by over 20%.

The biggest price rises were in cream crackers to accompany a cheeseboard. They rose in price by 50.9%.

The vegetables in your Christmas dinner fared better this year. Carrots fell in price by 20.5% and potatoes fell by 10.4%. Other vegetables rose in price, but only by relatively small amounts.

Broccoli went up in price by 4.4%, cauliflower rose by 6.3% and frozen peas by 4.6%.

Last year, the average cost of a Christmas dinner came to £99.82. The impact of a high rate of inflation over the last year has seen this rise by £7.50 to an average of £107.32.

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KPMG: Shopping habits are changing in UK

A recent survey of global shopping habits by KPMG has suggested that shoppers in the UK have been embracing technology at a much faster rate than many other countries.

Their survey indicated that across the world, 65% of shoppers prefer to buy goods like CDs, DVDs, books and games online, whilst in Britain the figure is 77%.

The survey involved 9,600 consumers in 31 different countries between the ages of 16 and 65.

When it comes to purchasing goods and services, the majority of people in the world now prefer to use social networking sites and online review sites before buying.

The surveys results suggested that nearly three quarters of people in the UK are more likely to buy flights and holidays online and nearly two thirds used online shopping to buy their groceries.

Four fifths of people also confirmed that they have downloaded mobile phone apps.

The survey showed that 45% of people in the UK use their mobile phones to find nearby stores whilst out shopping. A further 32% of people also use their phones to research products and services online and 19% scan barcodes for information. Another 30% also indicated that they use online coupons.

Experts suggest that this lifestyle change may have a big impact on retailers, particularly during the Christmas period.

However, whilst UK shoppers appear to be ahead when buying goods, the survey suggested that they were reluctant to embrace mobile banking. Only 27% of respondents from the UK confirmed that they used mobile banking, compared to 52% globally.

UK consumers are also more reluctant to adopt ‘cloud’ online data storage rather than keeping the information on their own computers. Around the world, 65% of people use cloud computing, whilst in the UK, only 53% of people do so.

Tudor Aw, the European head of technology at KPMG, said: “The report also shows that consumers’ concerns over privacy and data security have increased over the last few years and companies across all sectors need to take this concern seriously.”

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UK rail fares to rise by 6%

The government have announced that National Rail fares in the UK will be increased by 6 per cent on average. The increase will come into effect in January 2012.

The average 6 per cent rail far increase has been reached by using July’s RPI (retail price index) of 5 per cent and adding 1 per cent on top. RPI is often used as a measure of the cost of inflation. In real terms, some fares may increase by just 1 per cent and some may increase by 11 per cent, but the wide variation in the potential price increase is not expected to be tied to improved services on the line.

The Chancellor, George Osbourne, originally planned to increase the cost of train travel by 8 per cent: RPI plus an additional 3 per cent on top. He was forced to backtrack after widespread concern among passengers and a pressure campaign by Fair Fares Now, a high-profile group launched by Michael Palin in January 2011. Britain already boasts the most expensive rail fares in Europe, and many people who commute to work by rail were thought to be concerned that they would not be able to afford to do so.

The Chancellor’s concession is temporary, and the higher figure of 8 per cent will be used to calculate rail fares from 2013 onwards.

The cost of using the London Underground, as well as London buses, will also increase by 6 per cent in January 2012 instead of the planned 7 per cent rise. From 2013 onwards, the 7 per cent figure will be used to calculate price increases. Ken Livingstone, mayoral candidate for London, said that Londoners needed costs to be cut.

A spokesperson from the Campaign for Better Transport charity, who launched Fair Fares Now, said that train fares were still a “heavy burden” on many commuters, and the fact that new prices would come into effect in January would hit hard in a month when many families are financially stretched. Stephen Joseph, a spokesman for the charity, said they would like to see the cap on increased fares extended through to 2014. The leader of the TSSA rail union, Manuel Cortes, accused Mr Osborne of being motivated by politics, adding: “Our gut feeling is that he is really more interested in helping Boris beat Ken for London Mayor next May.”

The new prices will cost £130 million to implement and will take effect from Sunday 2nd January, leaving train operators slightly over one month to change their fare leaflets and notices to reflect the change of plan.

More than £5 billion investment into British transport has also been announced, including £1 billion to be ploughed into the railway network. Mr Osbourne said that investment could potentially make another £20 billion available for the creation of new roads, a plan which has so far proven to be unpopular with the Campaign to Protect Rural England.

Mr Osbourne also confirmed that a planned increase in fuel duty of 3p per litre would be delayed until August 2012, an announcement which the RAC commended.

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Small business start up business consultancy

As an entrepreneur considering a new business venture, you want to do everything in your power to minimise loss and maximise gain. The expertise of a business consultant can help you get it right straight out of the gates. The sooner you consult an expert, the more thought through and calculated your plans will be.

Initially your business consultant will help you analyse and evaluate the opportunity. Together you will explore questions like: Is there profit potential for an adequate return? What are the market needs? What are our greatest obstacles? What are our greatest advantages?

The answers to these questions will help create your business strategy and model. You will be able to identify your target market, and the strategies to help you reach that market. They will help you to develop your suppliers, as well as you buyer conditions.

Another essential pillar of your business that your consultant will help get in place is your resources. They will perform a thorough resource audit to help you identify needs such as what your current resources are in terms of talent and skill, as well as equipment and production potential. This will help you draft a Resource Management Gap Plan. This is vital to helping identify what must be outsourced, where new talent or more manpower must be recruited, and more.

They help you to acquire and leverage your resources by setting in place your control mechanisms. Establishing a good supply and demand system, with the right incentives and motivating factors with your resource providers helps you get your business off on the right foot.

To run a successful business, your business must be able to attract and retain quality employees. Your business consultant will help you with developing the best management system and pay scale for your company. Together you will also discuss and define your role as the company’s visionary and entrepreneur, as well as owner.

You will also appreciate their advice and insight to company participants. Investors, share holders, Owners, Employees, founders and entrepreneurs all collaborate better when the business model, plan and objectives are clearly defined and carried out.

When the time comes, your business consultant will also be able to help you with the question of distributing the value of your business, whether it is a merger, acquisition, company sale, or other distribution. Making the most profitable distribution will be easier with their advice and expertise.
Each step of the way, your enterprise will achieve the best results when your vision is reinforced by the skill, knowhow and insight of an experienced business consultant.

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