By Daily Mail (U.S.) | Created at 2024-11-25 07:19:55 | Updated at 2024-11-25 09:18:33
2 hours ago
A new study found that a standard Thanksgiving dinner is cheaper than ever, despite record price jumps in the grocery store since the COVID-19 pandemic.
And without inflation, prices would be the lowest since the 1980s.
The cost of this year's feast was estimated to be $58.08 for ten people, or $5.81 per person, according to a nationwide survey of grocery prices by the American Farm Bureau Federation, a lobbying group that represents millions of farmers.
That's a five percent drop from last year but still a 19 percent increase since 2019, pointing to stark realities of inflation over the last five years.
However, when adjusted for inflation, this year's Thanksgiving will be more friendly to Americans' wallets than it has been for decades.
'If your dollar had the same overall purchasing power as a consumer in 1984, right before the beginning of this survey – this would be the least expensive Thanksgiving meal in the 39-year history of the AFBF Thanksgiving survey, other than the outlier of 2020,' wrote the authors of the AFBF survey.
Of course, the purchasing power of the US dollar has gone down significantly since 1984. A dollar in 1984 is worth about $3.04 today, meaning a dollar back then could buy more than three times what it could now.
If you look at the more near term, things look a bit rosier.
Pictured: The graph above shows the real prices of turkey and Thanksgiving side dishes since 2005. It's not adjusted for inflation
Despite the nearly 20 percent inflation of the typical Thanksgiving meal over the last five years, median household wages have grown by about 25 percent over the same period, according to federal data.
'The average American also has to work fewer hours to buy the same meal than in previous years,' the AFBF survey stated. 'Wages continued to grow faster following the COVID-19 pandemic, even as inflation cooled. Because average wages rose 4% from 2023 to 2024, it took 9% less work time for us to pay for this year’s Thanksgiving dinner.'
Gains in wages haven't been equally seen by all workers and costs associated with housing and childcare continue to squeeze Americans.
Still, 'even with the decreasing purchasing power of the dollar, some of the goods in our basket are at their long-term lowest prices, even in terms of the "current dollar" price,' according to the survey.
The classic Thanksgiving dinner includes 11 items, as defined by the AFBF.
Seven of those items dropped in price this year, including turkey, sweet potatoes, frozen peas, a vegetable tray of carrots and celery, pumpkin pie mix, pie crusts and whole milk.
Sweet potatoes and whole milk had the biggest annual price drops, plummeting 26 percent and 14 percent, respectively.
The price of turkey, the centerpiece of any Thanksgiving, fell by 6 percent, which the survey described as an anomaly.
'According to USDA’s Turkeys Raised report, farmers raised 205 million turkeys in 2024, down 6% from last year and the lowest since 1985,' the survey said. 'Typically, fewer turkeys would mean an increase in price, but demand for turkey fell in 2024.'
This comes as major grocery stores are advertising their extra-cheap Thanksgiving meals
Dinner rolls, fresh cranberries, whipping cream and cubed stuffing all rose in price.
While fresh cranberry prices have climbed 12 percent, reversing an 18 percent decline the year before, they remain at their lowest level since 2015. When adjusted for inflation, they’re about on the same level as prices back in 1987, the report said.
This comes after Target released its cheapest ever Thanksgiving meal - coming in at $5 per person.
The supermarket is undercutting rival Walmart with the deal coming close to matching the meal offered by budget retailer Aldi.
Walmart's deal comes in at $7 per person, while Aldi said its meal marks 'the return of pre-inflation prices,' providing a full meal for 10 people for less than $47 - or $4.70 each.
At $20 for four people, Target's Thanksgiving meal is also $5 cheaper than it was last year.
Target's meal includes all the traditional Thanksgiving fixings, including a turkey, russet potatoes, green beans and stuffing mix.
Aldi's does as well, giving customers a Butterball turkey with spices, gravy, rolls, mac & cheese and stuffing.
Aldi also offers the ingredients for cranberry sauce, mashed potatoes, sweet potato casserole, green bean casserole and pumpkin pie.
