Christmas bargain hunters advised to do their shopping in New York

Christmas shoppers looking for bargains in London would be better off buying in New York, Paris, Berlin or Milan, a survey has revealed.

Popular seasonal presents were found to be 20 per cent cheaper in the Big Apple and 4 per cent cheaper in European cities, the research by American Express showed. The company compared prices of five gifts chosen because they were most likely to feature on a Christmas list. They were: Chanel No 5 perfume, Levi's 501 jeans for men, Microsoft's Xbox games console, a popular CD and a top-range DVD.

London proved to be more expensive than New York for all five luxury items. The best savings could be made on a pair of Levi's – which, priced at £49 in London, were £20 cheaper in the US – and a Microsoft Xbox, which was £26 cheaper across the Atlantic, where it could be bought for £142.

Chanel No 5 and the CDs and DVDs differed in price by less than £5. The price of a "top 20" CD was £13.99 in London compared with £10.38 in New York, and a DVD costing £17.99 in London cost £16.87 in New York. A saving of £72 could be made by buying all five items.

Prices in the European cities were also cheaper, though only by 4 per cent.

Brendan Walsh, from American Express, said the price variation across Europe indicated "an encouraging consistency" in prices across eurozone countries.

Referring to the starker difference between Britain and the United States, Mr Walsh advised bargain hunters to use the difference to book transatlantic flights, which had been cheaper since the 11 September terrorist attacks last year. "If you can travel midweek, the good news is that there are still a range of hotel rooms in the budget and luxury categories – a far cry from the normal situation when New York gets booked up months in advance for pre-Christmas shopping trips," Mr Walsh said.