Irish households will spend an average of more than €2,500 for Christmas 2016.

According to Retail Ireland, that is a jump of €26 on last year’s figure.

Its latest report says prices will remain low due to ‘aggressive’ competition between traders.

Thomas Burke from Ibec says it is a positive time for consumers: “All of the key economic indicators are pointing in the right direction.

“We have seen employment climb about 3% compared to Christmas of 2015 and that’s now over two million people now employed in the state.

“Disposable income in the first half of the year was up close to 2% and prices are down over 3% in the last quarter and nearly 9% over the last three years.

“So what that tells us is that it is a really good time to be an Irish consumer.”