Slowing Inflation Means a Slightly Cheaper Thanksgiving This Year

November 21, 2024

Although consumers have had to contend with high food prices throughout 2024, families across the country will at least pay less for Thanksgiving dinner next week than they did last year. According to the American Farm Bureau Federation, the average cost of Thanksgiving for 10 people will amount to $58.08, or about $5.80 per person. That marks a 5 percent drop from 2023. The decreased cost is good news for families who have faced high food prices over the last few years as a result of inflation. In fact, experts say that shoppers can expect more stable grocery prices in 2025 as inflation finally begins to ease.

Some of the most common Thanksgiving items have decreased in price this year, including the star of the show. “The turkey is traditionally the main attraction on the Thanksgiving table and is typically the most expensive part of the meal,” said Bernt Nelson, an economist at the American Farm Bureau Federation. The price of a 16-pound turkey dropped by six percent compared to last year while the cost of whole milk fell by more than 14 percent to $3.21 a gallon. Frozen peas dropped by eight percent to $1.73 per pound, and celery and carrots fell by six percent.

Still, foods that require processing — such as dinner rolls, cubed stuffing, and whipped cream — haven’t dropped in price due to high labor costs, sending prices up four percent over the past year. High transportation costs also mean that some regions of the U.S. will spend more on Thanksgiving dinner than others. The average cost in the West will be about $67, while the South, which hosts more agricultural producers, will pay about $56 on average. This is the second year in a row that average grocery prices have slowly dropped, with 2022 seeing the biggest price increase ever at a high of nine percent.

Questions:

  1. Why are processed foods like dinner rolls and whipped cream getting more expensive compared to agricultural products like milk and vegetables?
  2. How do transportation costs impact the cost of Thanksgiving across the country?

Source: Vanessa Yurkevich, “Cheaper Turkeys Help Bring Down Thanksgiving Dinner Costs This Year,” CNN, Nov. 20, 2024.