Thursday, November 24, 2016

Dollar strength leads to more purchasing power as Thanksgiving dinner costs for 2017 go down

It's Thanksgiving once again and that time of the year again where many things kick into motion for the American consumer.

Beginning with gasoline prices climbing a bit for areas around the country that switch over to winter blends, the season culminates with the arrival of snowbirds down South from Canada and the Northern U.S. locations and of course, the home stretch for retailers during the Christmas holiday shopping season.

But the main course for this period is as always Thanksgiving, and the coming together of families along with the cooking and baking of the traditional dinner.

Each year economists try to put together a cost analysis for the average dinner and more often than not, the price rises around 3-5% from the year before.  But with the dollar suddenly strengthening to levels not seen in the past 13 years, that additional purchasing power has done something not seen in quite some time...

A decline in cost for this year's Thanksgiving meal.

According to the American Farm Bureau Federation's (AFBF) annual informal price survey, the average meal for 10 people will be $49.87--  a 24-cent drop from last year’s average of $50.11. 
The survey’s shopping list includes enough turkey, bread stuffing, sweet potatoes, rolls (with butter, of course), peas, cranberries, a vegetable tray, pumpkin pie with whipped cream, coffee and milk for 10 eaters. The AFBF has been commissioning this study for 31 years. 
Foods showing the largest reductions this year were pumpkin pie mix, milk and a veggie tray comprised of celery and carrots. A 30-ounce can of pumpkin pie mix was $3.13, a gallon of milk was $3.17 and a one-pound veggie tray of celery and carrots was just 73-cents. 
A group of miscellaneous items including coffee and ingredients need to prepare the meal (butter, evaporated milk, onions, eggs, sugar and flour) came in at $2.81. 
The headliner – a 16-pound turkey – averaged a total of $22.74 (about $1.42 per pound). That’s a decrease of 2 cents per pound, or an overall 30 cents per whole turkey, compared to last year. - Fox News

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