At the pump and in the kitchen, inflation is testing the limits of American wallets. Prices of everyday food products are continuing to increase, with grocery inflation outpacing the overall inflation rate of 7.7% compared to 12.4%. Thanksgiving is just around the corner, and the price of turkey is 23% more than it was last year. These sharp increases have Americans left wondering, why are grocery prices so high and how much longer until prices go back to normal?
While there are many compounding factors driving inflation at the dinner table, the main cause of turkey-related price hikes is due to an outbreak of avian flu. Over 50 million birds in 46 states have been affected by the disease, significantly decreasing the supply available to grocery stores. This has caused turkey prices to shoot up in the past few weeks compared to the year before, and grocery stores have begun to sell smaller and younger turkeys to meet the demand.
It’s not just turkeys who are affected by the virus, however. Chicken prices are also seeing similar fluctuations, with the price of eggs being impacted the most out of any grocery product, up 40% from the previous year.
Even though the avian flu is a significant driving force of Thanksgiving inflation, it isn’t the only reason your grocery bill is so high. The economy is still feeling the impacts of the pandemic-related disruption, labor turnover rates and increasing gas prices in the transportation industry are pushing up the price of food. Climate change-driven droughts have lowered the supply of corn and tomatoes. While having more of an impact internationally, the war in Ukraine is driving up the prices of grain and fertilizer, which affects the cost of both meat and vegetable products. When compared to the previous year, almost every Thanksgiving food product has increased in price for one reason or another.
While many Americans are feeling the pain of increased prices, the same can’t be said for large corporations. In a time of soaring prices, some food suppliers have used inflation as an excuse to pad their profit margins, extracting every penny possible from consumers. Tyson Foods, one of America’s largest meat suppliers, increased the price of their food by 30% while paying their farmers 40% less and doubling their profits to over a billion dollars, and they aren’t alone with many other food companies seeing record profits this year.
At the other end of the economic spectrum, many economists are worried that ballooning credit card interest rates combined with increased prices and spending during the holiday season could leave many in a far worse position than in previous years. Instead of increased interest rates slowing spending, credit card debt increased by 13% in the past few months, which may compound economic issues going into the new year.
Soaring prices are also affecting those who need food the most. Price increases have left many food banks low on donations at a time when food insecurity is increasing. Combined with a shortage of turkeys this season, many food banks are worried they won’t have enough food to feed families looking for a meal during the holiday season. Low-income families are left balancing their necessities and crunching their spending down to the penny, with some forced to decide between gas to drive to work, or food for their children.
Inflation is impacting everyday Americans in almost every way, and experts suggest it won’t be going away anytime soon. The economic factors driving price increases will take time to subside, and federal interest rate hikes will slowly permeate through the economy. Some predict that we have already gone through the highest rate of inflation, but that it will likely take until the end of 2023 to fully dissipate.
Although inflation may be the main force in decreasing the size of your Thanksgiving plate this year, it isn’t the only one. International conflict, a bird flu, climate change, the pandemic, and corporate greed are all contributing to the high inflation we are experiencing, and it may leave some with an empty plate this Thanksgiving. If you can, consider donating to a local food bank to help ensure everyone has something to eat on their plate this Thursday.
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