New York CNN store —
It looks like Thanksgiving is going to be a lot more expensive this year.
Market research firm IRI predicts your Thanksgiving meal will cost about 13.5% year over year based on retail prices in the four weeks ended October 16 compared to the same period in 2021. IRI measures items such as turkey and other meats, baking essentials, beverages, and popular side dishes in his list of Thanksgiving foods.
Even if retailers offer promotions in the weeks or days leading up to the holidays, those prices will likely still be higher than they were for the same period a year ago. said Alastair Steel, Managing Director of IRI Client Engagement.
“Promotions might change the number a bit, but I don’t expect that [them] to swing it in a meaningful way,” he told CNN Business. “If anything, there are a little fewer promotions this year,” he added, because manufacturers have been raising prices as their own costs have risen.
It’s no surprise that Thanksgiving is expected to be more expensive this year given how high food prices have generally been. Extreme weather conditions such as drought and disease, including highly contagious bird flu, have contributed to persistently high food inflation. According to the Bureau of Labor Statistics, food prices soared 13% in the year to September, unadjusted for seasonal shifts.
Buyers know what’s coming. According to an IRI survey conducted in September, about 38% of consumers expect to pay more for Thanksgiving meals this year despite planning to buy the same amount of groceries.
However, there could still be some relief in the food sector. Discounters like Aldi and Lidl have promised low prices on some Thanksgiving favorites this year.
Aldi said it would drop some prices to 2019 levels, and Lidl said its typical Thanksgiving basket, including frozen turkey, fresh cranberries, sweet potatoes and more, will cost under $30 and feed 10 people until then the stock is enough. Discount retailers have attracted new customers as inflation has risen.