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Canadians likely to spend more on Thanksgiving dinner this year

Statistics Canada reported last month that prices for food purchased from stores rose 6.9% in August
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After more than a year of high food inflation, families gathering this weekend to gobble Thanksgiving dinner may be feeling the pinch after their grocery shopping. Kaicheng Xin/NNSL photo

After more than a year of high food inflation, families gathering this weekend to gobble Thanksgiving dinner may be feeling the pinch after their grocery shopping.

Statistics Canada reported last month that prices for food purchased from stores rose 6.9 per cent in August, down from an 8.5 per cent increase in July but still well above the month鈥檚 headline inflation rate of four per cent.

鈥淧rices haven鈥檛 went down, so you鈥檙e going to continue to see to see fairly large sticker shock on items and it鈥檚 making consumers re-think the traditional Thanksgiving meal,鈥 said retail analyst Bruce Winder.

鈥淪ome people are going to look at alternatives: is there a cheaper alternative that you can use to cook instead of maybe a turkey? Or do you maybe hold back on the big family gathering a little bit more? Do you make more and buy less from stores?鈥

Last year, the price of a kilogram of fresh turkey was about $6.59, or $42.84 for a 6.5-kilogram bird, according to the Agri-Food Analytics Lab.

A survey of weekly flyers from major grocery chains in the leadup to Thanksgiving shows some stores have seen a markup for the same product. At Metro, a fresh turkey cost $9.90 per kilogram, while at Sobeys, the price was listed at $7.69.

However, Loblaws鈥 flyer for the week showed the price of a kilogram of fresh turkey was $5.49.

鈥淧eople aren鈥檛 going to eliminate the dinner altogether, that鈥檚 too drastic,鈥 said Winder, noting many consumers 鈥渁re really up against the wall鈥 with the prices of gas and housing remaining high.

鈥淏ut they鈥檒l look for creative ways (to save). Maybe they do a little more potluck things this year.鈥

Other items typically on the Thanksgiving menu have also seen year-over-year price increases.

As of August, the retail price per kilogram of potatoes was up 6.8 per cent, while butter has seen a 9.2 per cent jump, according to Statistics Canada. Brown rice was about 6.3 per cent more expensive than last year.

But there鈥檚 reason to be optimistic, said economist Mike von Massow of the University of Guelph鈥檚 Ontario Agricultural College, who noted that although food prices are higher than last year, they have started to move in the right direction.

He added that many foods that typically find their way to the Thanksgiving dinner plate are also now in season, so month-over-month price changes should be more favourable for consumers.

鈥淥ne of the reasons we have Thanksgiving at this time of year is to celebrate and give thanks for the harvest,鈥 von Massow said.

鈥淏ecause we are in harvest time of year, if you look at mashed potatoes, if you look at apples and apple pie, if you look at pumpkins, and pumpkin pie, all of those are now available locally and in abundance. So we would expect, even in an inflationary time, that prices would come down at this time of year.鈥

Looking past the holiday, von Massow said it would be beneficial for Canadian shoppers to be open to changes in their typical food purchases if they want to spend less.

鈥淐anadians are very much creatures of habit. If broccoli was in my basket last week, it鈥檚 likely to be in my basket this week,鈥 he said.

鈥淲hile it may not help you this weekend for Thanksgiving, thinking about things like stored vegetables, which are produced in Canada 鈥 carrots, beets and some of those root vegetables 鈥 will give you an opportunity to save money, because you鈥檙e not buying the fresh stuff that鈥檚 coming in from the U.S.

Sammy Hudes, The Canadian Press

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