The average family in the UK will be £1,700 worse off next year due to the spiralling cost of living, financial forecasts suggest.
Analysis by the Centre for Economics and Business Research, conducted for BBC Panorama, predicts the rate of inflation will rise to 4.6% by Christmas - largely due to higher fuel and energy prices.
However, the full impact is not yet being felt by families, because the rising costs have not yet been passed onto customers in the shape of rising prices in supermarkets, say the analysts.
The BBC reports that stores are trying to keep prices down over the festive period - even if this means absorbing some of the price rises - because they don't want to loses customers.
The projections show a typical UK family, consisting of two adults and two children, spending £33.60 more per week compared top December 2020. This adds up to £1,700 per year.
The forecast is based on the cost of common items, including food and drink, clothing and household goods - and also includes spending on utility bills, transport costs, and on recreation and days out.
However, experts fear inflation could rise higher than the 4.6% used in their forecast, by Spring 2022, reports the BBC.
Andrew Selley, chief executive of food distributors Bidfoods, told the BBC: "I've never known things to be as challenging as they are currently.
"Whether you're looking at people resources, product availability, everything seems to be coming together at the moment and presents us with a very challenging set of circumstances."
Richard Mowbray, from vegetable growers TH Clements, said a shortage of seasonal workers from Europe had added to its increased costs - as it had been forced to raise wages to attract more British workers.
But Mr Mowbray said the increased labour costs were not the only factor pushing up costs for shoppers.
"It's fertiliser, energy, oil packaging. Everything that we look at at the moment has got inflation," he said.
- Panorama's Delivering Christmas: What's In Store? is on BBC One tonight at 7:30pm
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