BALTIMORE — Thanksgiving is right around the corner, but anyone who hasn’t bought their groceries for Thanksgiving yet, might want to hold off and make a reservation at a restaurant instead of making dinner.
A trip to the grocery store for shoppers these days often means spending more money and walking out with fewer bags in their cart.
Price increases are slowing but there are still causes for concern about when shoppers will see real relief.
Bankrate.com chief financial analyst greg McBride said “the bottom line is, you know, we need to see a sustained moderation in inflation pressures. One in a row is not a streak. We need a long winning streak."
According to the Bureau of Labor Satistics' latest Consumer Price Index, food was 10.9% more expensive in October 2022 than it was a year ago ,but it was only 0.6% more expensive in October compared to September.
It's a slower pace than earlier this year but that's on top of significant increases we've already seen throughout the year.
Since the beginning of the year, grocery prices have jumped 12.4%, while restaurant prices have jumped 8.6%.
Although the fed has raised interest rates in an effort to help stop inflation, it hasn't helped food prices from going up.
Poultry costs about 15% more this Thanksgiving than last.
Ham is 9% more expensive this year.
Flour to make your favorite Thanksgiving baked good was 24% more expensive year-over-year.
Some of the biggest price increases were in the dairy aisle where throughout the year, eggs jumped a whopping 43% and butter jumped nearly 27%.
While price increases appear to be slowing down, financial analysts are now worried about a renewed threat of a rail strike in early December.
“If you have renewed disruptions to the supply chain, that is going to add another element of price pressure that either pushes prices higher, or, just keeps them from falling like we'd like to see,” McBride said.
A University of Michigan survey of consumers reports that Americans are feeling worse about the U.S economy.
The fed is closely watching for changes in consumer confidence because if consumers believe prices will remain high, it could lead to increased wage demands, which in turn could cause businesses to raise prices even further.
