You might not know it by looking at the prices on grocery store shelves, but Thanksgiving dinner is more affordable than ever.
The cost of this year’s holiday feast is expected to be $58.08 for a party of 10, or $5.81 per person, down 5% since last year and the lowest level so far in 2021, According to the National Grocery Price Survey Sponsored by the American Farm Bureau Federation, which represents millions of American farmers. But after adjusting for inflation, the situation improved further.
“If your dollar had the same overall purchasing power as consumers did in 1984 … this would be the cheapest Thanksgiving meal in the 39-year history of the AFBF Thanksgiving Survey, barring the 2020 outlier,” the authors wrote.
For many families, this is not the case.
A defining feature of the post-pandemic recovery and the 2024 elections is Americans’ pessimistic view of the economy and its potential power. Understandably, many shoppers focus on price levels—the dollar value of the items they buy—rather than the inflation-adjusted, or “real” cost of those purchases. The latter is a true test of affordability because it reflects an often underestimated piece of the inflation puzzle: wage inflation.
In fact, while Thanksgiving food prices have increased 19% since 2019, federal data show the median household Salaries increase by approximately 25% within the same period.
What’s more, “the average American has to work fewer hours to buy the same meals than in previous years,” the report added. “While inflation has cooled, wages continue to grow at a faster pace in the wake of the COVID-19 pandemic. With average wages rising 4% from 2023 to 2024, we’ll have 9 fewer hours to pay for this year’s Thanksgiving dinner %.
Of course, wage growth has not boosted incomes evenly for all workers, and long-term spending like this housing costs and child care Continue to squeeze the income range of families. although Consumer confidence jumps In recent weeks, the numbers have remained below pre-pandemic levels.
However, the AFBF report said, “Even as the purchasing power of the U.S. dollar declines, some items in our basket are still at their lowest prices in the long term, even in ‘current U.S. dollar’ terms.”
For example, turkey prices are still 6% cheaper than last year despite avian influenza reducing some turkey stocks. Tight supply usually drives up prices, but Americans Eat about 1 pound less turkey The reduction in demand per person per year more than offsets the impact on supply.
Some of the processed foods that may appear on your Thanksgiving table are more expensive. Prices for dinner rolls and fillings are both up 8% from a year ago. On the other hand, sweet potatoes and whole milk saw the largest annual price declines, down 26% and 14% respectively. Although fresh cranberry prices rose 12%, reversing an 18% decline the previous year, they remained at their lowest levels Since 2015 Adjusted for inflation, their prices are the same as they were in 1987, the report said.
These affordability improvements are good news for inflation-weary shoppers, many of whom have become increasingly focused on value this year. For months, major consumer brands have been luring bargain-hungry customers with price cuts and promotions. Some, Such as Wal-Mart and TJ Maxsaw greater success than others, like target.
The wave of discounts has become more competitive Heading into the holidays, grocery retailers are no different. The food eaten at home is Only 1.1% more expensive Last month compared to the same period last year Overall consumer prices rose an average of 2.6%.
Target and Aldi are both offering Thanksgiving deals with lower prices than last year. Target is offering $20 Thanksgiving meals for fourincluding a small turkey, canned vegetables and stovetop stuffing mix. Aldi offers meal kits that serve 10 for $47its advertised price is lower than the 2019 price. Walmart is promoting a “Thanksgiving Without Inflation” 29 dishes serve 8 people and are priced at $56. Offered by Amazon Fresh thanksgiving discount Turkey, sides and dessert, serves six people for less than $5 per person, with additional savings for Prime members.
Experts say a series of promotions create plenty of opportunities for comparison shopping.
“I would just advise consumers to look at the ingredients in these foods,” said Robin Wenzel, director of Wells Fargo’s Agri-Food Research Institute. “Don’t be afraid to go to multiple retailers and look at it.”
Some Thanksgiving meal kits offer more ingredients, but that may mean preparing more dishes from scratch. Others have fewer items but require less preparation. “Thanksgiving is very personal for many families,” Wenzel said, and the various offers allow consumers to tailor their grocery shopping to their own gatherings.
The Wells Fargo Agri-Food Institute says a cost-saving strategy is to buy a store’s own “private label” brand, which can save shoppers $17 on their Thanksgiving menu (for a serving of 10). Consumer Reports experts also recommend Join supermarket loyalty and cashback schemes For extra savings, this often comes with conveniences such as virtual coupons in the store app.
Ultimately, what people pay for Thanksgiving dinner will also depend on location. AFBF estimates that households in the West, where holiday groceries are most expensive, spend on average about 18% more than households in the South, where holiday groceries are cheapest.
