Having a Christmas gathering this year? The feast will cost more this year

Published On Dec 19, 2024, 6:00 AM

This year, the cost of a Christmas feast in the U.S. has increased due to rising prices of key ingredients such as pork, lamb, sugar, eggs, and potatoes. A report from Expana highlighted that the overall price for the main Christmas meal has grown by approximately 2.3% year-over-year. Specific items have seen higher price increases, particularly boneless lamb legs (up 9.2%), bone-in hams (up 8.3%), and the cost of gingerbread ingredients, primarily due to soaring sugar and egg prices. The rise in food costs is attributed to sustained inflation, robust retail demand, and complications like avian influenza affecting egg supply. Consumers are expected to spend around $261 on food and other holiday preparations this year, showcasing an increase in holiday spending despite higher prices.

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With the increase in food prices for popular holiday items, companies involved in food distribution and retail may see varied impacts. Businesses (like grocery stores) may experience heightened demand as consumers shift to cost-conscious spending strategies. However, food producers of the affected goods may face margin squeezes due to rising costs. Retail companies with strong food sections are likely to benefit from increased consumer spending during the holidays. Additionally, commodities such as pork and sugar could see price fluctuations depending on supply dynamics.

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