BLACK FRIDAY INFLATION

Black Friday gets bigger every year, with deals and discounts running throughout the month of November. However, no matter how many bargains you bag, the costs of some of your electronics, clothes and household items will continue to creep up each year thanks to inflation.

Ahead of Black Friday 2021, leading price comparison site money.co.uk has analysed* seven of the most popular products over the past five years, from the iPhone to the most popular Dyson vacuum cleaner, and tracked which items have increased the most due to inflation, and which ones have managed to come down in price over the years.

1. Apple Watch

Apple released a new watch every year between 2016 and 2020, ranging from the Series 2 to the Series 6. Prices for the newest generation over the first four years remained within the same bracket, between £329.99 and £353. However, in 2020 the cost of a Series 6 watch rocketed up to £433 – representing a significant 22.7% increase on the previous year.

2. iPhone

The tech giant has also released a new iPhone every year between 2016 and 2020, however, the price increases are even more drastic. In 2016, the new iPhone 7 could be purchased for £599, but every year since then the cost for a new model has gone up by at least £50. Last year, the new iPhone 12 Pro cost customers a minimum £949 – a whopping 58.4% price increase since 2016.

3. Playstation 4

The Playstation 4 was released in 2013 and has maintained its popularity throughout the decade. In 2016, customers could pick a console up for £226.99. Shoppers enjoyed a significant reduction the next year to £179.99, but then in 2018, lowest price shot back up – and it has remained at or above the £200 mark ever since. In 2020, a PS4 would still have set you back at least £219.99, which is just £7 less than it would have done five years earlier.

4. Nintendo Switch

The Nintendo Switch was released in 2017 and the figures show that its price has followed a similar trajectory to the Playstation. As you would expect, the console was most expensive in its year of release, when customers paid at least £259 for one. The next year it was reduced to £224.99, and the price has plateaued ever since. Over the past two years, a Switch would set you back £219.99, meaning the cost has decreased by only 15% in five years.

5. Kindle Paperwhite

The 3rd generation of Amazon’s popular e-reader cost £98.08 in 2016, followed by a slight reduction to £89.00 a year later. 2018 saw the release of the 4th gen Paperwhite, and an understandable price hike to £99.99. A significant reduction to £69.99 came in 2019, however, customers were disappointed to see the price increase again, this time to £79.99, in 2020 – representing a 14.3% increase in just 12 months.

6. Amazon Echo Dot

There were three generations of Amazon’s home speaker system between 2016 and 2020. In 2016, the 2nd generation Echo Dot cost £49.95, followed by a small reduction the next year to £44.00. 2018 saw the introduction of the 3rd generation speaker and, surprisingly, a price decrease to £24.99, then £24.00 in 2019. But customers were once again asked to dig deep last year, when the 4th generation Echo Dot set them back at least £59.00 – which is more than double the previous year.

7. Dyson V8 Animal

If you veer away from electronics and towards appliances, you’ll see greater reductions in prices. The Dyson V8 Animal vacuum cleaner, one of the most popular on the market, cost a whopping £373.49 in 2016. The price shot down to £289.99 a year later, and is now a bargain at £219.99 – an impressive 41.1% decrease.

James Andrews, Senior Personal Finance Editor at money.co.uk said: “We can see that new models of the most sought-after items, such as iPhones, Apple Watches and Amazon smart speakers are usually released with a higher asking price than they once would have been. Meanwhile, older generations of electronics are maintaining value long after their release.

“These stark rises show that, if you want a new Apple device, then you’re going to have to dig deeper into your pockets than ever before. Not everyone needs the latest model, it’s a good idea to look at older generation devices to see if they offer what you’re after. If they do, then you can ignore the newer releases, save some cash – and still get a device that suits you.

“With fewer releases, you might think the cost of games consoles would decline significantly year after year, however, the stats show this isn’t necessarily the case. To make the most of your money, you should look out for bundle deals, which include various additional items, such as games, controllers and gadgets. Retailers usually offer them at reduced prices, however don’t be tempted to buy something just because it’s on offer, make sure it’s the make/model you actually want.

“The figures show that you can often get the best value for money when looking away from electronic items that hold their value, like games consoles, and focus on appliances. Developments in appliances are more infrequent and less drastic, so you can pick up an older item, which still does exactly the job you need it to, for a cut price.