Thanksgiving dinner will cost you more this year
Thanksgiving is going to cost a bit more this year.
The American Farm Bureau Federation's annual inflation-price survey of traditional Thanksgiving grub found that the average cost of this year's dinner for 10 is $50.11.
That would be a $0.70 increase from last year's average of $49.41.
That's just shy of 2%, up from a year ago.
Moreover, this marks the first time that the average cost of dinner was over $50. The cost of dinner has remained around $49 since 2011.
The AFBF survey shows that several key foods that make up Thanksgiving saw price increases. Notably, the star of the show, the turkey, will cost more. According to their data, a 16-pound turkey costs about $23.04 this year, around $1.39 more than last year.
"There were some production disruptions earlier this year due to the highly pathogenic avian influenza outbreak in the Midwest," AFBF Deputy Chief Economist John Anderson said. "Turkey production is down this year but not dramatically."
Turkey isn't the only thing seeing prices rise. Pumpkin pie mix ($3.20), a dozen brown-n-server rolls ($2.25), cubed bread stuffing ($2.61), and pie shells ($2.47 for two 9-inch ones) also experienced pretty healthy price increases this year.
So what does this mean in the grand scheme of things?
Consumers who notice the change may not like it.
But the direction of prices could play into the larger narrative of the will-they-or-won't-they game the Fed has been playing in the second half of 2015, as the Fed wants to time a rate hikewith inflation. Low inflation has been a big part of why the Fed has kept monetary policy loose and rates low. With consumer-price inflation data broadly picking up, the Fed will only be more likely to lift rates at its upcoming monetary policy meeting in December.
In short, the turkey is on the table. And for the Fed, December might be, too.
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