Downsizing will be very fashionable this year as so many people are experiencing the same financial struggles as you are with layoffs, paycuts, and as you said, the endless price hikes in everything from fuel to food. Your true friends will understand totally. You just keep that Christmas spirit alive because you never know who you are making a beautiful Christmas for.
In 2005 I lost my home in hurricane Rita. My 14 year old son had a broken leg and a few months later he and my husband were diagnosed with cancer. This all happened between September and December. I just kept putting one foot in front of the other each and every day but the single most memorable moment that made this possible was a home not far from me that had the most beautiful Christmas decorations I'd ever seen. Every single day I'd drive by that house and just knew that I'd be okay. I had no home and certainly no place for a Christmas tree that year. I rebuilt my home. My son is cancer free after two surgeries. My husband was actually misdiagnosed, but of course it tooks months to get these results. Last year I stopped by that house and brought the owners some pastries and told them how their home was our only Christmas in 2005. They laughed and said that they started not to put up their decorations when so many people had nothing that year. I told them that our family was so thankful that they kept the Christmas spirit alive for us. So you see, it's not all about presents. Your decorations and spirit just might make someones whole Christmas.