Thanksgiving Dinner Prices Drop After Years of Increases
The average cost of a traditional Thanksgiving feast has fallen this year, largely due to declining turkey prices. According to new data from Wells Fargo and the American Farm Bureau Federation (AFBF), the cost of a traditional meal has decreased by about 3 to 6%.
Factors Contributing to the Price Drop
The relief is due to easing supply chain pressures and intense competition among grocers. Stephanie Carls, a retail intelligence expert, notes that discounts are playing a significant role in driving down the average food cost this season. Many retailers are offering free turkey promotions and holiday meal packages to help families host without overspending.
Regional Variations in Prices
The cost of a standard meal varies by region, with the South having the lowest average cost at $50.01, followed by the Midwest at $54.38, the Northeast at $60.82, and the West at $61.75. The AFBF estimates that a dinner for 10 costs around $55.18, or about $5.52 per person, which is 5% less than last year.
Price Changes for Specific Items
National brand turkey prices have dropped the most, with the average price of a 16-pound frozen turkey falling 16% to $21.50 compared to last year. Other items, such as rolls and stuffing, have also seen price drops, with rolls falling 22% to about $3.56 a dozen. However, not everything is cheaper, with vegetables and dairy products seeing price increases.
Impact of Supply and Demand
The decline in turkey prices is due to increased supply and subsided avian flu outbreaks, allowing turkey supplies to recover. Turkey production has increased, and demand remains about the same year to year. This year, turkey makes up a smaller share of the Thanksgiving meal cost than usual, at just 39% of the total dinner price.
Other Price Changes
Other Thanksgiving staples, such as sweet potatoes, have seen significant price increases, with a 3-pound bag costing $4, up 37% from last year. Fresh vegetable peels, such as carrots and celery, are up 61%, costing up to $1.36 a pound. Hurricane damage, agricultural labor shortages, and typical fluctuations in produce have contributed to these higher prices.
Consumer Behavior
Despite price cuts, many Americans are still cutting costs by hosting smaller gatherings, skipping extras, and mixing homemade with store-bought dishes. Experts note that while lower turkey prices reflect improved supply and competitive holiday deals, they do not necessarily mean food inflation is behind us. Seasonal discounts can provide temporary relief, but it’s essential to look beyond a single item to understand the bigger picture of inflation.
