Consumers can expect only moderate price increases on Thanksgiving staples and less expensive turkeys this holiday season, Purdue Extension agricultural economist Corinne Alexander says.
In the U.S., average annual food price inflation is about 2.5%, but this year grocery food prices are running just 1% higher than 2012 prices.
"There's a lot of good news out there for the consumer. Food price inflation is very low this year," Alexander said in a Purdue interview. She suggests that prices for items most commonly associated with Thanksgiving meals will not all move in the same direction.
"We're expecting the overall Thanksgiving meal to be roughly the same price as last year and, potentially depending on what sort of in-store specials are being offered, you might even spend less this year than you did last year on Thanksgiving," she says.
Grab a turkey discount
Turkey, the main item on many Thanksgiving dinner menus, should cost consumers less this year. The USDA is predicting that wholesale prices for Eastern market whole turkeys will be between $1 and $1.06 per pound in the fourth quarter, compared with $1.06 per pound in 2012.
Alexander says consumers should remember that the way wholesale prices translate to retail prices depends on individual retailers. The actual price paid also will vary depending on whether a shopper chooses a whole turkey or turkey parts; frozen or fresh birds; fresh, precooked or complete turkey meals; brand names; and the value of store coupons and price specials.