Monday, November 25, 2013

How has the "Nominal" and "Real" price of a Thanksgiving Meal changed over time? I am glad you asked. See the answer here...

Here is a handy-dandy topic you can use on Thanksgiving Day when you run out things to say to your relatives.

The American Farm Bureau has released its annual update as to the cost of a Thanksgiving meal.

Here are the items in the market basket for the "average meal" on the Big Day (not inclusive of EVERYTHING we might have for dinner) and the price change from last year to this year.  This is an informal survey of prices nationally and they certainly will vary from region to region, urban to rural, etc.

Source: American Farm Bureau
Of course there HAS to be a deeper economic lesson and I am happy to provide that for you.

This graph shows, over time, the nominal price of the ingredients (just the prices in the particular year measured) in GOLD and the inflation adjusted prices in BLUE/GREEN.

The BLUE line is relatively flat, at least since post-1990, and hugs the $20.00 level.  This suggests that the "Real Cost" of a Thanksgiving meal has not change that much in 20+ years.  Only recently has it remained over $20 in real terms for consecutive years.  On an inflation adjusted basis we have enjoyed a relatively price stable Thanksgiving feast.
Source: American Farm Bureau
 Here is a chart with the nominal prices since 1986.

Source: American Farm Bureau
Here is a link specific to Texas. A nice graphic there as well...

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