Christmas shopping in the U.S.: Save up to 62 per cent in America (and it will cover the cost of your holiday)
Before the global recession, New York was the undisputed destination for Britons to indulge in a little cut-price Christmas shopping with two dollars to every pound.
That quickly unravelled as sterling's value plummeted by 25 per cent and cash-strapped households tightened their purse strings.
So consumers will be perhaps surprised to hear that the U.S. is once again cheaper than London for gifts this Christmas - in particular Boston, Massachusetts, where sales tax is lower than in New York.
It's a cracker: Boston has been found to be almost 50 per cent cheaper than London for some goods - one place to shop is Newbury Street
Price is wrong: London's cost of living has shot up, with many families worrying about how to afford Christmas
In factwhat you save could also pay for your holiday - great news for familieswhose budgets haven't stretched to a getaway this year.
A shopping guide by Post Office Travel Money has advised bargain-hunters to head for the New England city where prices for 10 typical Christmas gifts are 49 per cent cheaper than in London.
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Prices in New York and Las Vegas alsooffer better value for money than the capital, with some items 62 per cent cheaper Stateside than in the UK.
Including such items as an Apple iPodNano, Ray-Ban sunglasses and women's jeans, the 10 items surveyed cost just 664 in Boston compared with 1,296 in London, 716 in New York and710 in Las Vegas - savings which would cover a hotel stay and flights.
Some of the biggest transatlantic bargains to be made are on toys. The largest saving is on Lets Rock Elmo - 85 in London but 40.13 in Boston (53 per cent less) and 48.78 (43 per cent less) in New York.
A Ralph Lauren mens jumper is 120 in London, 63.48 in New York and 60.82 in Boston - 49 per cent cheaper.
Savings can also be made on electronics - the Nintendo 3DS console and Apple iPod Nano (8GB) are priced at more than 20 per cent less in America than in London.
HOW THE PRICES COMPARE
An Apple iPod Nano (8GB) cost 115.00 in London, 89.91 in New York and 87.74 in Boston
Elizabeth Arden 8 hour cream (50ml) costs 25.00 in London, 11.85 in New York and 11.56 in Boston
Womens 7 For All Mankind 'Roxanne' skinny jeans cost 160.00 in London, 110.82 in New York and 101.79 in Boston
UGG 'Classic Short' boots cost 175.00 in London, 104.55 in New York and 96.02 in Boston
Mens True Religion 'Ricky' straight-leg jeans cost 319.00 in London, 122.67 in New York and 119.71 in Boston
Ray-Ban 'Classic Aviator' sunglasses cost 188.00 in London, 96.88 in New York and 94.54 in Boston
Mens Ralph Lauren long-sleeved half-zip jumper costs 120.00 in London, 63.48 in New York and 60.82 in Boston
Sesame Street Let's Rock Elmo costs 85.00 in London, 48.78 in New York and 40.13 in Boston
Nerf Vortex Nitron Blaster costs 58.00 in London, 34.84 in New York and 27.20 in Boston
Star Wars Ultimate FX Lightsaber - Darth Vader costs 51.00 in London, 32.05 in New York and 23.81 in Boston
TOTAL 1,296.00 in London 715.83 in New York and 663.32 in Boston
While there were many savings to be made, the Post Office warned that consumers would have to be choosy as there are some 'unexpected bad buys'. Some men's jeans and perfumes were more expensive in New York than in London.
For example, Jennifer Aniston's Eau de Parfum cost 32 per cent more in the Big Apple than in London.
Post Office Travel Money head Sarah Munro said: 'When it comes to a battle for the best bargains, Boston wins out because sales tax is lower than in New York and clothing that costs under 175 dollars (about 113) is exempt.
'What's more, Boston package prices are cheaper than New York and the city has shops to matchthe Big Apple.'
She ad ded: 'Prices in the U.S. are so much lower than in London that two people could pool their duty free allowances of 390 and have more than enough to buy all 10 items in Boston, New York or Las Vegas.'
Savings: Department stores like Macy's in New York are popular with British tourists during the festive season
Ms Munro advised: 'Find out what items cost in the UK before leaving and compare these with the U.S. price tag before splashing the cash.
'Toys are almost always cheaper but we still found bad buys like the Lego Harry Potter Playstation3 game, which costs 39 per cent more in New York.'
A spokesman from the British Retail Consortium said the U.S. managed to win on price through scale.
He said: Therehas always been a difference in the price of consumer goods between America andthe UK. The U.S. is a much bigger market which means there are greater economiesof scale.
'There is also a difference in the cost of doing business in bothcountries. In the U.S. tax and regulation costs are lower compared to the UK. Butthe UK is still much cheaper than almost every country in the European Union.
The news will come as a welcome relief to many families as they endure the biggest cost of living squeeze in more than 60 years.
Research from insurer Aviva today revealed how indebted families are living with credit card bills, loans and overdraft debts which typically equal nearly half of their yearly income.
Aviva said typical monthly incomes have risen by 46 since January, but energy bills, transport costs and food bills have soared, sending spending on non-essentials plummeting.
A quarter of families are allocating nothing for holidays and more than half (52 per cent) have no budget for children's activities.
It ! was also revealed this week that people are increasingly planning to exchange presents through a 'Secret Santa' system in a bid to reduce the costs of the festive season.
A study by American Express (Amex) found that one in four will look at taking part in the 'lottery' where each friend or family member receives just one gift.
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