"A Thanksgiving Day turkey dinner with side dishes and dessert will be 11% more expensive this year, the biggest annual increase since 1990, because of depleted frozen-turkey supplies and rising energy prices.

The average cost of 12 items typically served during the Nov. 22 holiday in the U.S. rose to $42.26 from $38.10 last year, the American Farm Bureau Federation said Thursday."

-American
Farm Bureau Federation

 

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Here’s the kicker: "Adjusted for inflation, the cost is $20.46, about 9% less than in the first survey in 1986." 

Why do I suspect no one really believes that?

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The American
Farm Bureau Federation Turkey Dinner

Birdday

 

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I don’t what family of 10 they think they are gonna feed with that short list (12 OZ cranberries? A pound of peas?)

Enjoy your Thanksgiving!

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Sources:
Thanksgiving Dinner Cost Inches Higher This Year
November 15, 2007
http://www.fb.org/newsroom/nr/nr2007/11-15-07/thanksgiving_graphic_07.pdf

Turkey dinner to cost you 11% more
Los Angeles Times/Bloomberg News
November 16, 2007
http://www.latimes.com/business/la-fi-turkey16nov16,1,1421112.story

Category: Commodities, Inflation

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

13 Responses to “Thanksgiving Inflation: 11%”

  1. Eclectic says:

    Well, the drop in corn lately won’t help you this year. That gobbler you’re eating today gobbled up older higher priced corn:

    http://finance.yahoo.com/q/bc?s=CPO&t=1y&l=on&z=m&q=l&c=

  2. KP says:

    Anyone got a Green Peas ETF they want to recommend?

  3. Ironman says:

    They’re missing the whole ethanol subsidy angle! The primary reason there are fewer turkeys is that the increased subsidies for ethanol production are distorting the entire agricultural market:

    1. Farmers are selling massive amounts of corn to the ethanol producers, making less of it available to feed turkeys.

    2. Farmers are planting more corn to meet the ethanol producers increased demand for it, at the expense of other crops like soybeans, which means that less of those crops are available to feed turkeys.

    3. Less food available to feed turkeys = fewer turkeys. The price of turkeys goes up (or for that matter, everything touched by a decision of farmers to plant corn instead of what they had been planting – a good example is beer, where farmers aren’t planting hops in favor of planting corn, which is resulting in making beer more expensive!)

    Supply or Demand: What’s Driving the Price?

  4. Costa says:

    Barry,
    your math is all wrong. you aren’t using the govt method of measuring inflation. If you take turkey, pumpkin pie and milk. There is no increase and everything is good.

  5. Vader says:

    Every year, the local Grocery gives away a turkey to its frequent customers.

    My dad shops there and I have not had to buy a turkey in the last 10 years.

    Current Thanksgiving Dinner is the Free Turkey, a can of Sam’s Choice Baked Beans and Baked Potatoes.

    Total cost about $2.50

  6. Winston Munn says:

    This year I drove my hedonically adjusted auto and found a turkey substitution in the form of “road kill” racoon, which if baked long enough tastes….really….bad.

  7. Pat Gorup says:

    Regardless of the cost, enjoy Thanksgiving Day and the meal you have. Afterall, next year it’ll be more expensive.

  8. Ross says:

    Winston, please!
    Hedonically speaking, I only eat free range road kill. If it is still twiching, I assume it is fresh. And remember, morning road kill is the most important road kill of the day!

    Anyone noticed that Tarzhey opened at 7AM today? Koals opens at 4AM tomorrow.

  9. jimcos42 says:

    Food fight.

    I consulted my Quicken database and calculated that our year-over-year (Dec05-Nov06 compared with Dec06-Nov07) change in home food expense was +13.7%.

    And since food is about 9% of our total household expense, this increase alone adds about 1.2% to our overall expense line. Then we deal with the remaining 91%.

    My wife and I are active retireds and agree that we haven’t changed our eating habits any.

    But we’re quite grateful we have the wherewithal to endure the cost, just count our blessings, and enjoy the day.

  10. Movie Guy says:

    I’ll just discuss one item.

    You can’t buy a gallon of milk down this way for $3.88 at one of the grocery stores. Try $4.25 as of two days ago, and Mayfield’s gallon is still going for $5.98. Now, Sam’s and WalMart are a different story, but that’s 62 miles down toward the Big A.

    PS: You left off the ice cream. I mean, really…

  11. Bill Luby says:

    Of course the ‘core’ turkey dinner, net of food and energy costs, is no more expensive than it ever has been…

  12. Winston Munn says:

    Ross,

    Perhaps we should collaborate on a book: The Road Kill Substitution Cookbook.

  13. Thanksgiving inflation: 11% higher since last year

    Thanksgiving inflation: 11% higher since last year