Thanksgiving Economics

Be Thankful... for Economics?

Are you traveling for Thanksgiving, or are you hosting at your place? Regardless of your specific plans, I wish you all a Happy Thanksgiving!

Can you remember? A year ago, Thanksgiving was still a somewhat difficult time for many of us. This year, things seem more open, and at least at my local Stater Bros., the shelves seem better stocked for some serious gatherings of family and friends. I know many who work in healthcare have still had a very difficult time over the last few weeks, with all sorts of viruses around (my 6 year old daughter had RSV and was out of school for over a week), but I hope that everyone gets some time to rest and relax and be reminded of what’s most important.

…And what would a post from IEEU be without some economics? The Bureau of Transportation Statistics usually estimates a small drop in total trips taken around the Thanksgiving holiday, but there are still about 6 billion trips between 1-25 miles being made around this time of year. In California, gas prices are up from $4.60 last year to $5.30 this year, which makes holiday travel about 15% more expensive than it was a year ago.

It's not just gas, either. Let’s say you go out to eat the night or two before Thanksgiving, just to give yourself a little break before a day of baking pies, cooking all the sides, and of course, the star of the show. The Bureau of Labor Statistics estimates that between September 2021 and September 2022, the “Food Away From Home” CPI subseries for the Inland Empire (read: restaurant prices) increased by 10.7%. That’s quite the hike! (It’s probably best to let Dad handle the check this year, and maybe hold off on ordering that second round of drinks.)

Speaking of drinks, the same CPI report for the I.E. found that local alcoholic beverage prices increased by just 2.6% over the same period. Given average inflation in the price of all goods and services was 8.4%, that’s not so bad. So maybe save that second round you were planning on ordering at the restaurant, for when you get back home? (Just don’t forget to order an Uber if you plan on driving. Oh, and I personally recommend a nice St. Bernardus Christmas Ale or Sierra Nevada Celebration Ale for this time of year.)

Finally, when it comes to the big day, the BLS finds I.E. shoppers be spending about 11.5% on food overall. But, it actually gets even worse – 21.0% inflation in “cereals and bakery products”, 9.3% inflation in “meats, poultry, fish, and eggs” (think: Turkey), and 9.4% inflation in fruits and vegetables. Again, these are all from September 2021-September 2022. Food inflation has been up nationally for a while now.

So, be thankful for economics this year, even if it’s just to tell you how much more everything will cost.

If you liked this post, please consider sharing with a colleague or friend who works in the area! Happy Thanksgiving!