Thanksgiving Dinner Prices: Up from Pre-Pandemic, but Down from Last Year
Inflation-weary Americans can find some relief this Thanksgiving as the cost of a 10-person dinner at home is down 4.5% from last year, according to the American Farm Bureau Federation (AFBF). The average price for a Thanksgiving meal this year is $61.17, compared to $64.05 in 2020. Although prices remain higher than pre-pandemic levels, this slight decrease suggests a positive turnaround. In 2019, the cost for a similar gathering was just $48.91 before the onset of COVID-19.
The AFBF Survey
The AFBF surveyed all 50 states and Puerto Rico between November 1 and November 6 to assess the cost of a classic Thanksgiving dinner. The survey included items like turkey, fresh cranberries, and whipping cream. Its findings indicate that a 16-pound frozen whole turkey, averaging at $27.35, accounted for 45% of the total cost of the meal, while similar turkeys in 2020 cost slightly more at $28.96.
Inflation and the Federal Reserve
Declining inflation rates have played a role in the decrease in Thanksgiving dinner prices. After raising interest rates 11 times since March 2022, the Federal Reserve has managed to cool soaring prices. In October, US inflation rose by 3.2% as opposed to a peak of 9.1% in June 2020. Although still above the Fed’s 2% target inflation rate, the slowing inflation has provided some relief to consumers.
Long-Term Trends
According to Deutsche Bank research strategist Jim Reid, the cost of Thanksgiving dinners is likely to decrease over time. Historically, agricultural prices have fallen when taking inflation into account. In the last 150 years, the price of wheat has fallen by an average of 1.2% annually, while a food price index has decreased by 1.6% yearly since 1947. Despite occasional increases, these trends point to lower food prices in the long run, providing some assurance that the cost of Thanksgiving dinners will not outpace general inflation.
Source: Your Thanksgiving dinner still costs way more than it did before the pandemic
