The impact of inflation on everyday items doesn’t take a vacation, and many Americans will witness rising prices during their Independence Day celebrations.
A basket of products for the traditional Fourth of July cookout will reach its highest level ever recorded, according to a survey run by the American Farm Bureau.
This year, a cookout for 10 people will cost $71.22, reflecting a 5% increase from last year and a staggering 30% rise compared to five years ago. This equates to $7.12 per person, the highest per-person cost ever recorded.
Nationally, this means we are surpassing $7 per person for the first time, with the total meal coming to $7.12 a person.
Traders monitoring agricultural commodities have noted that the Invesco DB Agriculture Fund DBA has surged 13% in the past year and over 50% compared to five years ago.
“Your grocery bill may be a shock, but it is in line with the inflation that has roiled the economy – including the farm economy – over the last several years,” said Bernt Nelson, an economist at the American Farm Bureau.
Meat Costs: The Hefty Burden
Meat prices, which constitute the largest portion of the cookout budget, have seen significant hikes:
- Ground Beef: 2 pounds cost $12.77, up 11% from last year. Nelson highlighted that the smallest cattle inventory in 73 years, combined with high summer demand and improved drought conditions, is driving up beef prices.
- Pork Chops: $15.49 for 2 pounds, an 8% increase. The impact of California’s Proposition 12, which mandates higher animal welfare standards, is pushing pork prices higher nationwide.
- Chicken Breast: $7.83 for 2 pounds, a 4% decrease. Increased broiler production has helped lower chicken prices, offering some relief.
| Item | Cost (2 pounds) | Change from Last Year |
|---|---|---|
| Ground Beef | $12.77 | +11% |
| Pork Chops | $15.49 | +8% |
| Chicken Breast | $7.83 | -4% |
Beef Prices Outpace Inflation
The latest Bureau of Labor Statistics’ consumer price inflation (CPI) report for May shows ground beef at $5.15 per pound.
This national price average marks a significant increase from $4.10 per pound three years ago and $3.82 per pound five years ago, prior to the pandemic.
Consequently, beef prices have surged by 26% over the past three years and 35% over the past five years, outpacing the average CPI inflation during the same periods.
Rising Cost Of Side Dishes
Side dishes have also seen price changes:
- Hamburger Buns: $2.41 per package, up 7%.
- Ice Cream: $5.65 per half-gallon, up 7%.
- Lemonade: $4.19, up 12%, driven by reduced lemon production and higher sugar prices.
Other items like potato chips ($4.90) and strawberries ($4.61 for two pints) have also become more expensive.
At least one side dish item, potato salad, decreased by 4%. This is due to higher egg prices offset by lower potato prices.
Regional Price Variations
Prices vary by region, with the Northeast enjoying the lowest costs and the West experiencing the highest. Here’s a breakdown:
- Northeast: $63.54 for 10 people
- South: $68.33 for 10 people
- Midwest: $68.26 for 10 people
- West: $80.88 for 10 people
Despite rising costs, Americans still benefit from the world’s most affordable food system, according to Nelson. On average, Americans spend just 6.7% of their total expenditures on food and non-alcoholic beverages, the lowest percentage globally.
However, “consumers nationwide still view inflation and high food prices as ongoing problems,” the economist stated, as inflation erodes purchasing power, posing challenges for both consumers and producers.
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