The NRA claimed that decreased Christmas purchases experienced in Australia this year is mainly due to higher interest rates.

Nevertheless, shoppers still invaded street shops as well as shopping malls by the millions in a bid to get those hands on that precious last minute gift.

A late Christmas spending spree dash by shoppers has still contributed in making this the busiest spending week this year.

Margy Osmond, an NRA spokeswoman, explained the reduced Christmas spending by saying it was caused by higher interest rates, as well as government handouts being absent.

She claimed justifiable the concerns stemming from the retail sector regarding the Reserve Bank’s rates.

Ms Osmond said that Australian retailers are experiencing less spectacular Christmas sale days than they would otherwise witness.

She claimed that the retailers’ concerns over the interest rates is that consumers have seen three consecutive increases and that the full impact is still waiting to make itself felt, adding that it could take a while before it flows through the economy.

The NRA predicted Australian post-Christmas shoppers will spend in excess of $14.7 billion during that period, representing an increase of 5 per cent over the 2008 figures but still  short of the traditional 6 to 7 percent jump in cash register activity.

This year, the most popular items seems to be homewares, clothing  and consumer electronics.