As the holiday season approaches, families are getting ready for Thanksgiving gatherings. Surprisingly, the cost of the traditional feast is more affordable this year compared to recent years.
According to a nationwide survey, the average cost for a Thanksgiving dinner for ten people is estimated at $58.08, which is about $5.81 per person. This represents a 5% decrease from the previous year and is the lowest cost since 2021. Adjusted for inflation, this Thanksgiving meal is the least expensive in nearly four decades, except for the unusual circumstances of 2020.
Despite the drop in costs, many households may not feel the relief due to ongoing economic challenges. While food prices for Thanksgiving have risen by 19% since 2019, median household wages have increased by about 25% during the same period. This means that, on average, Americans now need to work fewer hours to afford their Thanksgiving meals compared to previous years, highlighting the complex relationship between inflation and wage dynamics.
Geography plays a significant role in determining Thanksgiving expenses. Households in the Western United States are estimated to spend approximately 18% more on average than those in the South, where grocery prices are generally lower. This regional disparity emphasizes the importance of local economic conditions and food supply chains during the holiday season.
While the overall cost of Thanksgiving dinner has decreased, the prices of specific items show a mixed picture. Turkey prices have dropped by 6% compared to last year, despite challenges such as bird flu affecting turkey inventories. On the other hand, some processed foods, such as dinner rolls and cubed stuffing, have seen price increases of 8% over the past year.
Certain staples have experienced significant price reductions. Sweet potatoes and whole milk have seen steep annual price drops of 26% and 14%, respectively. Fresh cranberries, while experiencing a 12% price increase, remain at their lowest level since 2015 when adjusted for inflation.
The competitive landscape among grocery retailers has intensified as they compete for budget-conscious consumers. Major retailers like Walmart and Aldi have introduced Thanksgiving meal packages priced lower than last year. Walmart promotes an "inflation-free Thanksgiving" meal that serves eight for $56, while Aldi offers a $47 meal package for ten people. Target has launched a $20 Thanksgiving meal for four, which includes a small turkey and canned vegetables.
As Thanksgiving approaches, pricing, regional differences, and consumer behavior will continue to shape the holiday experience for families across the nation. The evolving dynamics of the grocery market, coupled with wage growth and inflation, will play a crucial role in how Americans celebrate this cherished holiday.