It's Christmas bargain-time with cheaper clothes, toys and DVDs

CHRISTMAS shoppers will get much better bargains this year, with big falls in prices for some of the most popular buys, according to analysis of the latest inflation figures. The cost of toys last month was almost 8pc less than in November last year and the drop in the price of electrical goods, such as TVs and DVD players, was even bigger - 9pc cheaper than in 2003. But wining and dining will cost more than last Christmas. The price of meals in restaurants and cafes is 5pc up , beer is 3.3pc dearer, wine 2.6pc and spirits 2pc. But drink in off-licences is much the same price as twelve months ago. Books are one of the few popular presents which are more expensive, while the cost of clothes and shoes is 3.3pc down. Even jewellery will cost little more than last Christmas, according to Austin Hughes, chief economist at IIB Bank. "The influence of the euro, tumbling costs for electrical goods worldwide and intense competition in retailing, probably heightened by internet shopping, means the cost of Christmas may not be rising as fast as we all feel," he said. The figures from the Central Statistics Office show prices rose by two-tenths of a per cent in November, leaving them 2.9pc higher than the same month last year. This was higher than the October rate of 2.8pc but should still leave average inflation for the whole of 2004 at 2.2pc - the best figure since 1999. Nearly all the November increase was due to higher energy costs, which rose more than 15pc during the twelve months. Although oil prices have fallen, the effects of the recent rise in electricity costs have yet to show through. Mr Hughes expects inflation to remain subdued at 2.5pc next year. But this disguises a wide spread between falling prices for many items and sharp increases in the cost of many services. - Brendan Keenan