With Christmas markets set to open across Europe within the next fortnight, the Post Office barometer compares costs in 12 European cities with those in 2019 – and found prices in the Latvian capital are now 45% lower than in Vienna, which came out as the priciest city in the survey.

Riga’s barometer total of £507 for two people was calculated by combining the costs of return flights, two nights’ three-star accommodation, airport transfers, two evening meals with wine, coffee, festive drinks, and snacks at the market.  

Riga’s ranking was due to the low cost of accommodation and cheap flights because the city was ranked only sixth cheapest for meals and drinks.

Budapest (£745) was the cheapest for these items, but the higher cost of flights and accommodation meant the Hungarian capital could only take eighth place in the barometer. 

Nick Boden, head of Post Office Travel Money, said: "Our research reflects the concern that people have about living costs but also shows that their solution is more likely to be cost cutting rather than jettisoning holiday plans.

"Short breaks are a practical way to holiday abroad for a lower cost, and at this time of year Christmas markets are a real attraction."

Zagreb was runner-up in the barometer with a total of £541, followed by Poland’s Krakow (£649). The cost of a two-night break in all three cities was found to have risen by less than 5% since 2019 – by 2.2% in Riga, 3.5% in Zagreb and 4.9% in Krakow.

Elsewhere, costs in fourth-placed Tallinn (£684) rose by 29%, while they were up by over a third (34.4%) in Copenhagen, where the overall cost of £881 made it the second most expensive city surveyed.

Vienna was priciest of the 12 cities at £921, up 18.6% on 2019 levels. It was also around 19% more expensive than another Austrian city, Salzburg (£775), a new addition to the barometer, which came ninth in the survey.