The main contributor to the cost of Thanksgiving dinner is the price of a 16-pound frozen turkey, which is declining.
As Americans prepare for Thanksgiving, there is a sense of relief with prices down slightly from last year’s record high.
Although the annual American Farm Bureau Federation survey shows a 4.5% decrease from 2022, a traditional feast for 10 people will still cost 25% more than in 2019, amounting to $61.17, or about $6.12 per guest. Will happen.
The main reason for the price decline is the declining cost of a 16-pound frozen turkey, which accounts for 45% of the total food cost to $27.35 – a 5.6% decrease from 2022. Other items that experienced price declines included whipping cream (down 22.8%), cranberries (down 18.3%), cubed stuffing (down 2.8%), and frozen peas (down 1.1%).
However, pumpkin pie mix (up 3.8%), dinner rolls (up 2.9%), and sweet potatoes (up 0.3%) will see slight increases in cost.
Regional variations are notable, with people in the Northeast expected to pay the most ($64.38 on average), while people in the Midwest will spend the least at $58.66.
Despite this year’s decline, the survey highlights a 25% increase in the cost of a Thanksgiving meal compared to 2019, primarily due to inflation. The Wells Fargo Agri-Food Institute estimates a 9% decline from last year, an even bigger decline than the Farm Bureau estimates.
Discrepancies arise in specific items, as turkey and fresh cranberries see price cuts, while ham, canned green beans, russet potatoes, and beer become more expensive.
In macroeconomic terms, inflation, although declining, still remains above the Federal Reserve’s 2% target. Consumer prices rose 3.2% annually in October, with grocery prices up 2.1% on the year.
Grocery prices have been volatile due to rising feed and fertilizer costs, extreme weather events and persistent supply chain challenges. Despite recent fluctuations, grocery prices have increased by about 17% over the past two years, affecting the 59.5% of Americans who struggle with food costs.