By Carmen Reinicke -
CNCB + Acorns
Inflation comes to your Thanksgiving feast.
In September, the consumer price index - a basket of products - rose 5.4% from a year ago, almost reaching a 30-year high, according to data from the US Bureau of Labor Statistics.
[Inflation reaches its highest level in three decades with a 6.2% rise in prices]
And below those numbers, the cost of food rose 4.6%, with the biggest increases driven by price increases for meat, poultry, fish and eggs.
The United States Department of Agriculture (USDA) also expects food costs at home to rise 2.5% to 3.5% for the entire year 2021.
"I wouldn't be surprised if we saw the Thanksgiving shopping basket go up about that percentage," said Veronica Nigh, chief economist for the American Farm Bureau Federation.
By comparison, in 2020, the median price for Thanksgiving dinner dropped 4% from a year earlier, to $ 46.90, or about $ 5 per person, according to the Farm Bureau.
Why are prices rising
There are a few reasons why almost every ingredient in a Thanksgiving dinner will be more expensive this year.
Supply chain problems have persisted throughout the pandemic and have raised costs.
This can contribute to a limited supply as some foods take longer to arrive.
[The economy gains 531,000 jobs in October and rebounds strongly after a disappointing summer due to fear of COVID]
There are other deficits that can also drive up prices.
Turkeys, which are often the most expensive part of the Thanksgiving feast, are less on sale this year than last.
This is recommended by experts to yield the money during the historical inflation that hits the country
Nov. 10, 202101: 51
"It's probably the lowest bird inventory we've had in maybe 10 or 11 years," said Curt Covington, senior director of institutional credit at AgAmerica.
That has driven up prices.
Turkeys between 5.5 pounds (2.5 kilos) and 9.9 pounds (4.5 kilos) cost 25 cents per kilo more than a year ago, while the prices of birds between 9.9 pounds (4.5 kilos) and 11 pounds (5 kilos) they are about 21 cents more expensive, according to an Oct. 29 report from the Department of Agriculture.
Other costs associated with Thanksgiving dinner have also risen: the price of gasoline has increased more than 42% in the year, appliances are 9.6% more expensive and even the prices of kitchen utensils and tableware They have risen.
"Just the metal cost to put blueberries in a can has gone up," Covington said.
"It's widespread and it's going to take a long time for the supply chain to get back to normal until long after Thanksgiving and Christmas."
What Consumers Can Do
There are a few things consumers can do to make their Thanksgiving meal as affordable as possible, according to experts.
1. Start early:
First, start shopping for your dinner as soon as possible, so you don't get caught off guard by last-minute price increases.
[The richest person in the world takes a survey on social networks and sinks the value of a tech giant with the answer]
Many consumers have taken note of the increase in prices and have started to buy some items for the November banquet.
About 63% of consumers expect rising food costs to make Thanksgiving more expensive, according to a recent FinanceBuzz survey.
The same survey revealed that consumers plan to combat rising costs by buying on sale, using coupons, spending less on food or by inviting fewer people home.
A group of people toast with wine during Thanksgiving dinner at the dining room table.skynesher / Getty Images
Others have already started stocking up on non-perishable goods: 35% of those surveyed by Shopkick revealed that they had already started shopping for Thanksgiving to stay ahead of product shortages and last-minute price spikes.
2. Look for deals:
Starting early also gives consumers more time to search for deals, which will be especially important for those on a budget this year.
Look for rebates on any item you can stock up on ahead of time and check prices at various grocery stores, including discount places like Aldi, Lidl and WinCo foods, said Brittain Ladd, a global strategy and supply chain consultant.
[The Great Renunciation is burning those who remain. This is what they can do]
Buying frozen foods is usually cheaper than buying fresh, so you can look for bargains in the freezer aisle.
Consumers should also consider grocery stores that offer Thanksgiving deals like a free turkey if you buy most of your ingredients in one place.
3. Sharing expenses:
People may want to have bigger Thanksgiving gatherings than last year because of COVID-19.
Having more friends and family can be an opportunity to keep costs down: instead of the host being solely responsible for the meal, the costs can be spread among the guests.
“It's very important to talk to family and friends,” recalls Kaitlin Walsh-Epstein, senior vice president of marketing for Laurel Road.
"Ask everyone to contribute a portion of the food," he suggests.
4. Get creative:
Other consumers may want to substitute parts of a traditional Thanksgiving feast for cheaper options, such as swapping turkey for another protein that may be easier to find at a discount, according to Covington.
It may also be a good year to skip the grocery store entirely and see if you can find a local farmer who can sell ingredients for Thanksgiving dinner.
"Potentially, you will get a higher quality product, perhaps even at a better price," Covington said.
This article is part of the
Invest in You Ready series.
Set.
Grow
(Invest in you: Ready. Done. Grow), an initiative of CNBC and Acorns, the microinvestment app.
NBC Universal and Comcast Ventures are
Acorns
investors
.