US Inflation Slows... "Thanksgiving Spending Also Drops 4.5%"

National Farmers Federation Outlook
"This Thanksgiving Cost Down to $61.17"
Price Drop in Turkey and Other Food Items

As inflation in the United States eases, there are forecasts that Americans' spending during this year's Thanksgiving holiday will decrease compared to last year.

On the 18th, foreign media including The Wall Street Journal (WSJ) cited the American Farm Bureau Federation (AFBF), reporting that the cost of a Thanksgiving party for 10 people this year is expected to be $61.17, a 4.5% decrease from a year ago. Market research firm Circana predicted that Thanksgiving spending this year will increase by 2% compared to last year, but considering last year's 14% increase, the growth rate is expected to slow significantly.

As food prices for wheat, corn, cooking oil, and other items that surged due to Russia's invasion of Ukraine last year have stabilized, the spending burden on Americans during the Thanksgiving holiday has eased. Most notably, the impact of avian influenza (AI) infections, which spread across the United States until early this year, has subsided, causing turkey and egg prices to fall to historic average levels.

According to market research firm Honor Barie, the wholesale price of turkey has dropped 32% compared to a year ago for a 16-pound bird. The average retail price of turkey is $27.35 for 16 pounds, down 5.6% from last year. Although it takes time for wholesale price declines to be reflected in retail prices, retailers plan to hold large-scale discount events, so the price drop felt by consumers for turkey is expected to increase further.

Jay Jandrein, CEO of Butterball, the largest turkey supplier in the U.S., said, "The industry has rebounded quite quickly," adding, "As consumers expect larger gatherings this year, we anticipate demand for bigger and heavier turkeys."

The easing of Americans' spending burden during this year's Thanksgiving holiday can also be seen as a reflection of the recent slowdown in the consumer price index (CPI) inflation rate. The U.S. CPI for October rose 3.2% year-over-year, significantly down from 3.7% in the previous month. With the slowdown in CPI inflation, expectations for interest rate cuts have spread in the market, leading to declines in U.S. Treasury bonds and the dollar.

This content was produced with the assistance of AI translation services.