CNBC: This year’s Thanksgiving dinner is historically affordable

Utilizing information based on a nationwide survey of grocery prices from the American Farm Bureau Federation, CNBC reported that this year’s Thanksgiving dinner will be historically affordable. They estimate that on average, it would cost $58.08 to feed 10 individuals. Since shoppers will not see this when looking at the prices at the store, CNBC argued from the “adjusted for inflation” angle.

From CNBC:

The costs of this year’s holiday feast — estimated at $58.08 for a 10-person gathering, or $5.81 a head — dropped 5% since last year, the lowest level since 2021, according to a nationwide survey of grocery prices by the American Farm Bureau Federation, which represents millions of U.S. farmers. But the picture improves further when adjusted for inflation.

“If your dollar had the same overall purchasing power as a consumer in 1984 … this would be the least expensive Thanksgiving meal in the 39-year history of the AFBF Thanksgiving survey, other than the outlier of 2020,” the authors wrote.

For plenty of households, it doesn’t feel that way.

A defining feature of the post-pandemic recovery, and the 2024 election, is the divergence between Americans’ sour views of the economy and its underlying strength. Many shoppers understandably focus on price levels — the dollar value of the things they buy — rather than those purchases’ inflation-adjusted, or “real,” costs. The latter is the true test of affordability, since it reflects an often underappreciated piece of the inflation puzzle: wage inflation.

And indeed, while Thanksgiving food prices are up 19% since 2019, according to the AFBF, federal data shows median household wages growing by about 25% during the same period.

Additional Reading:

Feng, J. (2024, November 24). Thanksgiving dinner is historically affordable this year. CNBC. Link.

Category: Society