The cost of living's looming like the Grinch for Kiwis this Christmas

The latest Westpac McDermott Miller Consumer Confidence Index has dramatically dropped in December, falling 12 points to 75.6.

It's the lowest it's been since the survey began in 1988.

Westpac NZ senior Economist, Satish Ranchhod says it's driven by a range of factors.

He says increasing costs of housing and food - and nervousness about the direction of the economy - are weighing on people's minds as they plan spending this Christmas.