According to a survey conducted by Ernst & Young (EY) and published on Monday by the German news outlet Deutsche Presse-Agentur, a large number of Germans this year are opting to save money on Christmas gifts as the country is witnessing severe inflation.

More than 1,000 German households took part in the survey carried out last November.

The report cited a retail expert at EY Michael Renz stating that participants are currently primarily concerned with managing their spending amidst the economic distress and are not in a state of mind to give gifts.

Read more: Germany to face short-term blackouts in winter

Renz noted that houses with annual net income of less than $26,000 have struggled the most, adding that the group's Christmas gift spending is anticipated to decrease by 24% to 124 euros, the biggest drop since the beginning of the yearly survey back in 2008.

The report added that this year marked the lowest average budget for Christmas gifts in German households since 2014.

This year's average budget was recorded to be 252 euros, less than that of 2021 by 21 euros.

Price hikes are affecting households and corporations in Europe's largest economy as the government forecasts a 0.4% contraction in GDP next year amid aspirations in Berlin to mitigate the rising energy prices, like by imposing a partial cap on the prices of gas and electricity, which will come into force in 2023.

Read more: Germany can no longer avert economic recession - Deutsche Bank CEO

Earlier last week, a representative poll conducted by the Institute for New Social Answers (INSA) has reported that a quarter of the German population say they will not and cannot purchase gifts this year for Christmas as a result of the skyrocketing inflation.

The poll demonstrated that less than half of those who participated indicated purchasing Christmas gifts can fit within their budget and in their regular income, as opposed to the 23% of respondents who said they wouldn't be able to afford to buy gifts.

22% said their savings would fall short if they did, and 3% said they may accrue debts.

Thousands took to the streets in Berlin on November 12 to protest rising food prices, calling for the cooling of the red-hot expenses and for the rich to face higher taxes in light of the ongoing cost of living crisis in Germany.

The protestors had many demands to ask from the government in Berlin, and with many banners raised during the protests, one of them demanded the redistribution of wealth through the word "Redistribute!"

Just earlier this month, INSA also conducted a poll which found that half of Germans feel that the federal government's attempts to address the energy crisis will not secure their wallets throughout the winter.

Read more: Rising Annual Inflation Rate in Germany