That is changing this year, with the holiday getting more expensive in 2021. This could force U.S. households to trim their servings of turkey, apple pie, mashed potatoes, and little tiny onions.
Pass the Potatoes, Not the Savings
The American Farm Bureau Federation (AFBF) expects the typical Thanksgiving dinner will cost more in 2021. The group says it could cost 14% more than last year.
Turkeys weighing between 8-16 pounds cost 25 cents per pound more than they did a year ago. From the cranberry sauce to fresh biscuits and rolls, nearly every food item has gone up in price since last year’s festivities.
Here is a look at how much some of the most popular foods at Thanksgiving have increased in cost over the last year:
- Whole frozen turkey: +20%
- Ham: +7.1%
- Bread: +2.3%
- Pies: +4.1%
- Milk: +4.3%
- Potatoes: +1.7%
- Canned Vegetables: +6.6%
- Sauces & Gravies: +1.8%
But why is food getting more expensive in the United States this year?
The Rise of Food Inflation
The price of making food is rising. The cost of fertilizer, animal feed, and fuel is growing. In the next stage of the supply chain, there is a shortage of workers who can help with transport and packaging.
AFBF Senior Economist Veronica Nigh said the COVID pandemic has caused the price to rise. She pointed to factors like “disruptions to the U.S. economy and supply chains over the last 20 months” due to the virus and lockdowns. It was also difficult to predict what products would be in demand during the COVID-19 pandemic, meaning it was hard to guess what items people would be buying.
Nigh added that there is a “high global demand for food, particularly meat,” right now. More people have been cooking and eating at home since 2020, causing a rise in prices at grocery stores as they try to adapt.
Inflation (a general rise in prices) is affecting other items, too. The appliances needed to cook these big dinners are also getting more expensive.
Demand is large as more people travel for this year’s Thanksgiving. Last year, many Americans stayed home. They couldn’t visit family and friends because of the pandemic. Gasoline prices are rising, making the trip to see Aunt Karen and Grandfather John a bit costlier.
How Are Families Responding?
A new FinanceBuzz survey showed that most Americans (63%) think growing food costs will affect their turkey dinners. One-quarter of Americans say they may need to trim their servings on the dinner plate, and one-fifth say they are planning to host fewer guests.
Bloomberg News noted that many families are using other ways to save money. This includes buying less meat and cooking fewer side dishes.
Some experts think the spring of next year could be when the country starts to see lower prices.
Try a quiz based on this article
Over the last 10 years the price of food for Thanksgiving has ________. That is changing in 2021.
Show the answer
Decreased.
The American Farm Bureau Federation expects the Thanksgiving meal in 2021 to cost ____ more than last year.
Show the answer
14%.
Turkeys that weigh between 8 and 16 pounds cost 25 cents more per pound than last year’s turkeys.
Show the answer
True.
Turkey is the only food item that has increased in cost.
Show the answer
False.
Along with more expensive fertilizer, animal feed, and fuel, shortages of _______ for transporting and packaging items has led to increased price tags.
Show the answer
Workers.
What is a supply chain?
Show the answer
The process of getting products from where they are made to the consumer..
Lockdowns due to the COVID-19 pandemic made it difficult for suppliers to know what people would be buying.
Show the answer
True.
There is higher-than-normal global demand for what product?
Show the answer
Meat.
Increased _________ prices are making travel more costly this year as well.
Show the answer
Gasoline.
When do experts believe the prices will begin to go down?
Show the answer
Spring 2022.
