Enjoying Thanksgiving dinner with family and friends, a traditional custom for many Americans. But this year, the cost of many popular dishes has gone up. Problems like inflation, supply disruptions and bad weather have pushed up the price of just about everything. Thanksgiving dinner will cost 20 percent more this year than last in an inflationary environment, according to a new survey released by the American Farm Bureau Federation.
The average cost for a feast of 10 people and 12 courses this year is $64.05, up from $53.31 in 2021. It costs about $6.50 per person. It will be the most expensive dinner since the holiday survey began 37 years ago. The shopping list includes turkey, stuffing, sweet potatoes, butter rolls, peas, cranberries, vegetable trays, butterscotch pumpkin pie, coffee and milk.
“Widespread inflation has reduced consumers’ purchasing power, which is a significant factor in increasing the average cost of Thanksgiving dinner this year”, financial expert Natalie Warb from CouponBirds said. The average price of a 16-pound turkey this year is $28.96, up 21% from 2021, according to the survey. Inflation cooled last month but remained high at 7.7% in the year to October.
Four decades of inflation and an ongoing outbreak of viral bird flu earlier this year have pushed up turkey production costs. “This has been a very challenging year for turkey producers across the country,” said Beth Breeding, spokeswoman for the National Turkey Federation, “we’ve lost about 8 million turkeys to date,” she said, “a little more than 3 percent of the expected annual turkey crop.” Turkey prices rose 24.4 per cent year on year in the week to November 6.
Another factor: Russia’s invasion of Ukraine, a drop in Russian oil exports due to trade sanctions that have disrupted supply chains and increased energy costs. It has also sent the cost of fertilizer, of which Russia is a major producer, soaring and cut Ukraine’s grain exports.
Despite this year’s price hike, the Farm Bureau, the nation’s largest agricultural advocacy group, says the average dinner cost of $64.05 is still a good deal, less than $6.50 per person. Last year’s feast cost $53.31.
Analysts at Wells Fargo said eating out on Thanksgiving could be more cost-effective this year, given the time and money most Americans spend on their Thanksgiving meal. “Eating out can be expensive, but this year it could be more cost-effective than people expect. The impact of higher commodity costs on grocery stores is more direct than it is on restaurants.” Because inflation has less impact on the cost of eating out (up 5.79% on average) than groceries (up 9.81% on average).
To keep the overall cost of dining down, most hosts are focusing on the snap up deals and discounts that grocery stores like to roll out at this time of year. Quite a few people also plan to cut back on the number of side dishes on their Thanksgiving table and quite a few hope to pay for the meal by reducing their monthly grocery bill.
Food inflation is complicated, and there is no solution that will ease the burden on Americans burdened by the high cost of groceries. But recent consumer price readings have shown some signs of easing. Annual inflation, which has been above 8% since March, edged down to 7.7% in October. After rising more than a percentage point a month in the spring and summer, the monthly increase in food prices slowed to 0.4%.
It comes as research has revealed that two thirds of adults worry about being able to afford a Christmas dinner. Last holiday season, concerns centered on supply chain disruptions. This year, inflation robbed consumers of purchasing power. So here are some cost-saving strategies to help you beat high food groceries inflation:
- Double check the sale. Generic brands can be 10 to 30 percent cheaper than “premium” brands and just as good.
- Plan your meals. Go shopping with a general idea of what to do in the coming week to help stay on track and avoid impulse purchases.
- Buy in bulk. Compare personal inflation rates to your purchases, but make sure they are still useful.
- Use a cash back application.
Inflation may be there like a gift this holiday season, but it doesn’t have to spoil the fun. While food inflation shows no signs of slowing down anytime soon, price increase doesn’t have to dampen the holiday spirit, and while it’s important to save money and live within your means, it’s even more important that we have these moments of connection.