Christmas is fast approaching and retailers are preparing for the what is usually the busy festive period of consumer spending.
But new research by Boost Mobile shows 90 per cent of Australians have made changes to their purchasing behaviour as a result of the rising cost of living.
Jason Hayes says Australians surveyed are actively reviewing their grocery and petrol purchases and are concerned about the cost of housing, electricity and mobile phone expenses.
"We've spoken to thousands of consumers across Australia. Independent researchers show more than one in ten Australians are struggling to sleep at night due to their worrying about finances. That's damning statistics. It's even higher in regional areas."
A survey by Barnardo's also found 47 per cent of families surveyed reported they will cut back on presents for their children.
So, will the bubble burst on the Christmas consumer spending spree for gifts and decorations?
At London's Spirit of Christmas Fair, shopping for gifts has already begun. But times are hard.
Clayre Shield from Pollyfields is hopeful that consumers will always want to treat themselves at Christmas, despite the economic hardship affecting many.
"I think everybody has that little bit tucked away just to do the Christmas thing. And even if it's one small little item that they get just to bring them that special feeling, I think people will still do it and seemingly still doing it. So I know it's tough for lots of people, but a little tiny treat works wonders."
