Cranberries Are a Thanksgiving Staple. Even the Can Will Cost More This Year.

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Are you eating cranberry sauce as part of your Thanksgiving dinner? Even the cost of the tin to store the canned variety has gone up this year. Americans are set to be among the most expensive in the past 35 years in 2021, thanks to inflation and supply-chain pressures that have made everything from groceries to gasoline to tablecloths more expensive. , According to many experts, the good news is that rising costs will subside—but not until after the holidays.

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The cost of a traditional turkey dinner, which includes staples like cranberries and pumpkin pie, rose 14% to an average of $53.31 against $46.90 for 10 people last year. Farm Bureau Survey This Is the Most Americans Spent on the Thanksgiving Feast in the last 35 years, or since the survey began.

“I don’t see any component of the traditional Thanksgiving holiday meal that really avoided high food costs,” said Kurt Covington, senior director of institutional credit at AgAmerica, a non-bank agricultural lender. “The cost of the metal just to put cranberries in a tin has gone up.”

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Hot rolled coil prices – a key steel benchmark – have risen nearly 130% in the past 12 months and 66% so far in 2021 to $1,700 a tonne. Hot rolled prices were around $600 a tonne in 2019 before the pandemic. , Tin-plated steel cans are made by further processing hot-rolled coils.

A Farm Bureau survey found that a 16-pound turkey will cost Americans $4.60 more this year, while a veggie tray will cost nine cents more.

Consumer prices in the US up 6.2% in the 12 months ended October Latest Bureau of Labor Statistics Report, This is the fastest rate of inflation since 1990.

Prices are also rising beyond the Thanksgiving table. For example, general apparel costs rose 4.3% year over year after falling 5.45% last year. The cost of transporting clothes to dry cleaners or laundry services increased by 6.9%.

Driving to attend Thanksgiving dinner will also cost more this year. NS The national average for a gallon of gas has climbed to $3.40, up from $2.10 a year ago. Bringing gifts to the party? Your gift wrap costs 8.3% more year over year, while still likely to be expensive – and could be delayed if it were ordered online.

Retailers such as Hasbro (ticker: HAS) have not fulfilled orders due to limited capacity and port congestion issues. Target (TGT) is warning shoppers in its order-tracking email that some orders “may be affected by nationwide shipping delays.”

The delay has been due to paucity of truck drivers to transport the goods from the port to the warehouse. This has resulted in higher shipping costs, the burden of which is now being passed on to the customers.

“If there’s anything to send, it’s going to be worth more this season,” said Jamie Cox, a financial advisor and managing partner at Harris Financial Group. baron’s,

AP Moller-Marsky

(MAERSK.B.Denmark), the world’s largest shipping company, said its net income last quarter was higher than any full year in the company’s history.

Cox said the vaccine mandate has also added to the labor shortage. “I get calls every day from employees who are retiring because of employer orders for vaccines,” he said. But according to Cox, these conditions should only be fleeting.

“They don’t have to last forever…. It’s quite possible that consumers will get a break in the coming year, but not this year,” said the advisor, indicating that Christmas this year will be even more expensive.

President Joe Biden asked Americans to “relax” this Thanksgiving as he announced actions to tackle rising energy prices. The White House said the Energy Department will release 50 million barrels of oil from its strategic reserves, which is expected to boost supplies and ease prices. The US release is part of a coordinated effort with China, India, Japan, South Korea and the United Kingdom.

“Grocery stores have everything you need for turkey and Thanksgiving,” the president said. Biden said he met with the CEOs of giant retailers walmart (wmt), target, home depot (HD), TJX (TJX), and others, all of whom have agreed to move products and stock shelves more quickly.

Biden announced in mid-October that ports in Los Angeles and Long Beach, California would operate 24-7 in an effort to address shipping delays.

While Thanksgiving dinner will cost more, the boom in retail sales and foot traffic at grocers show that consumers are generally prepared to bear rising costs. But for how long?

Retail sales rose 1.7% in October from 1.4% in September, evidence that consumers are drawn to higher-priced goods this holiday season.

Foot traffic is also increasing in stores in November. Target’s foot traffic grew 15.8% in the second week of November compared to the same period in 2019, while grocer Albertsons saw a 16.63% increase against 2019 levels. The jump in prices has hit Americans who were hit particularly hard by the end of government aid related to the pandemic in September. The benefits ended at about the same time as consumer prices rose.

Disposable personal income decreased 1.3% in September, while personal-consumption expenditure increased by 0.6%, according to the latest report. Bureau of Economic Analysis. The agency attributes the outlay to the end of “several pandemic-related aid programs.”

Making matters worse, retailers are limiting discounts this holiday season due to cost pressures.

Brands that typically discount heavily discounted products are pulling back this year to ensure a more balanced supply and demand, said Jonathan Treber, CEO of Revtrax, a platform that helps brands deploy promotions across marketing channels. Is.

Write to Karishma Vanjani at [email protected]

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