With increasing costs of energy and agricultural commodities, the inflation in food prices is back after its hiatus from the food and beverage industry in 2009. Food prices are constantly going up and this is being reflected in Thanksgiving this year. At the same time last year, it was a good bargain to head to the supermarket and buy any type of food. According to an annual survey conducted for 3 grocery chains, the cost of 15 items that are usually included in the Thanksgiving dinner have gone up 8%, from the prices last year. This includes a 20 pound turkey, which now costs 53.64 dollars, up from 49.77 dollars, around the same time last year.
The average costs are found by sampling which began in 2007 and includes the same items as well as grocers to calculate the average. The averages usually leave out sales prices and promotions and instead consider the trademarked brands to maintain consistency in the calculation process (similar studies are tracked for products such as wheelchair accessories). Every grocery chain offers some items at lower cost than other chains’ averages and there are promotions and promotions of shopper club involved too. Out of the 15 items, the prices have seemed to increase for 12. The biggest increases have been for bakery items and dairy products, like milk or coffee in your cup holder.
According to grocery operators, products related to dairy and grains now cost a lot more. Dairy is considered to be a residual category and if the cost of fluid milk goes up, it makes the costs of many other products higher too. The upward pressure on the cost of food is a testimony to the increasing cost of energy and important farm commodities, according to an analyst of food and consumer trends. The prices of corn and wheat futures have jumped more than 30% this year and there has been a 20% jump in the prices of soy beans (aren’t you glad we’re offering our drink holder at a discount). These 3 are important elements in food manufacturing and dairy and meat production. The prices of energy went up by 6% since October 2009. The prices of gasoline have gone up by 9.5% during the same time interval. Many consumables’ giants are planning on boosting the prices on most of their products even as manufacturers are cutting down on deals. Food at home price, as a result of all these has gone up by 1.4% although there are conflicting numbers. Some believe it is close to 6%, a figure that consumers cannot handle economically or mentally.