Your 4th of July celebrations will be more expensive, with one exception

New York
CNN Business

4th of July celebrations are going to cost a lot more this year. The silver lining? Beer is still relatively cheap.

In the four weeks ending June 12, the price of a The hot dog package jumped about 17% from a year ago, according to market research firm IRI, which tracks total U.S. multi-point retail sales in the US supermarkets, big box retailers, convenience stores and other places.

Over the same period, ketchup prices climbed 21%, ground beef prices increased 11% and hamburger and hot dog buns jumped nearly 13%.

Other grill items have also become more expensive. Frozen meat excluding poultry rose 16%, frozen sausages rose nearly 27%, and lettuce prices rose about 13%. Mustard also got about 13% more expensive.

Beer, on the other hand, was only up about 4%. That’s a godsend, considering that the personal consumption expenditure price index, a key indicator of inflation, rose 6.3% for the year ended May.

But overall, « the cost of vacations is going to be much higher this year than even last year, » Joan Driggs, vice president of thought leadership at IRI, told CNN Business.

It shouldn’t shock you so much that Independence Day is hard on your wallet – grocery store prices have skyrocketed over the past year.

According to the Consumer Price Index, groceries were about 12% more expensive in the year ending May, the largest year-over-year increase since 1979.

There are several reasons for these drastic increases. Rising fuel prices, rising commodity prices due to the war in Ukraine, and severe weather have all impacted food supplies and driven up prices.

Driggs pointed to another problem – the difficulty of predicting customer demand. Some manufacturers may have expected more people to eat in restaurants now, she said, but « with inflation, maybe people aren’t dining out as much as they used to. »

Meanwhile, the demand for home celebrations is rising. “People are expecting a little more home entertainment this year,” Driggs said.

Those who purchased grilling items in the weeks leading up to June 12 may not have purchased barbecues specifically for Independence Day. Now, with the 4th of July fast approaching, there might be some deals to be had. But any discount will likely be small, Driggs noted.

The prices might seem « a little more palatable when you take into consideration some of the promotions that are out there, » Driggs said. But this year’s deals may not reach « the depths of discounts we’ve seen in the past, » she said.

For example: In years past, consumers may have seen one bought one free free offers in stores. This year they may have to buy two to get the gift.

One reason for the less generous discounts, Driggs noted, is that with higher gas prices, fewer people will shop around for the best price.

« It’s kind of a bonus for retailers, » she said, but « It’s a tough mix for buyers right now. »

– CNN’s Chiara Grimes and Alicia Wallace contributed to this report.

cnn en2fr2en

Back to top button