Retail Ireland, the Ibec sub-group that represents Irish retails, has forecast how much Irish households will spend this Christmas, with consumers set to splash out close to €1,000 more in December than they do every other month on average.

Irish households together will spend €5.39bn over Christmas, or an additional €1.86bn when compared to the other months of the year, which equates to around €978 per household.

"After Covid clouding the celebrations over the last couple of years, there are signs Irish consumers are determined to ensure the Christmas is properly marked this year," said Arnold Dillon, director of Retail Ireland.

"Spending is likely to happen a bit later this year, however, as people started shopping a bit earlier last year due to a concern about new Covid restrictions."

The forecast comes as consumers continue to struggle with rising inflation, with retail sales having fallen in September both in terms of volume and value.

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With consumer price inflation now standing at 9.2%, shoppers will be very focused on getting value for their money, Dillon said.

"The Irish consumer is resilient, but has had to deal with a lot over recent years. A strong retail recovery after Covid restrictions was dampened by war in Ukraine and increased cost pressures," Dillon added.

"Tax reductions and additional budgetary steps to ease energy cost concerns will hopefully help lift the consumer mood over the coming months."