A new report from the American Farm Bureau Federation says that Thanksgiving dinner will cost Americans 13% more this year than it did in 2010, yet another indicator that price inflation with respect to necessities like food and energy is not a transitory phenomenon.
The retail cost of menu items for a classic Thanksgiving dinner including turkey, stuffing, cranberries, pumpkin pie and all the basic trimmings increased about 13 percent this year, according to the American Farm Bureau Federation.
AFBF’s 26th annual informal price survey of classic items found on the Thanksgiving Day dinner table indicates the average cost of this year’s feast for 10 is $49.20, a $5.73 price increase from last year’s average of $43.47.
In addition, “the era of grocers holding the line on retail food cost increases is basically over,” Anderson explained. “Retailers are being more aggressive about passing on higher costs for shipping, processing and storing food to consumers, although turkeys may still be featured in special sales and promotions close to Thanksgiving.
A total of 141 volunteer shoppers from 35 states participated in this year’s survey. Farm Bureau’s survey menu has remained unchanged since 1986 to allow for consistent price comparisons.
While Mr. Bernanke and the Federal Reserve claim inflation is under control, those of us who actually visit grocery stores know that food prices have been rising steadily for years.
Grocers have tried to keep prices low while taking the hit on the wholesale supply side, but as commodity costs have risen their margins have collapsed, making it ever more difficult for them to turn a profit. Thus, they have been left with no choice but to pass those costs on to consumers.
The Federal Reserve has officially committed to maintaining inflation at a rate of around 2%. The result of this policy is yet another mega-fail by the best and the brightest – a sharp 13% rise in Thanksgiving food prices (and similar increases in other essential goods necessary for survival). This year the Fed estimates inflation will reach between 3.5% and 4.5% – the fastest pace in three years. Considering government estimates will manifest as price increases of four or five times the official expectations we can only imagine where prices will be come Thanksgiving 2012. It should do wonders for the 100 million Americans in or on the edge of poverty.