What is in this article?:
- Americans to spend more and less for holidays
- How consumers buy will dictate savings
Fuel prices are expected to rise as families take to the highways to enjoy Thanksgiving in places far and near.
The cost of traditional holiday foods this Thanksgiving will be a bit of a trade off for most Americans with the cost of turkey down slightly while other food products will cost slightly more at the grocery store. And if you are celebrating the recent drop in gasoline prices-- hold on -- pump prices are expected to rise just in time for Thanksgiving.
While analysts say domestic fuel supplies have been ample to meet a slightly lower demand in recent weeks resulting in a drop in gas prices at the pump, that trend could reverse as more Americans hit the road for the holidays, reinforcing a usual rise in gas prices as the season unfolds.
Analysts say while pump prices are lower than they have been in about 33 months, travelers should expect a price spike by the end of the year. Currently, AAA Motor Club officials say one in four gas stations nationwide are selling gasoline for less than $3 a gallon at the start of this week (Nov. 18), but say a modest increase is expected once the Thanksgiving travel season gets underway next week.
They say slightly higher prices are also expected for the Christmas travel season next month. But if consumers are hoping for a break in holiday food costs for Thanksgiving and Christmas, it may be a hit-and-miss year.
Purdue Extension agricultural economist Corinne Alexander says there is good news for consumers planning on serving up a traditional Turkey for Thanksgiving.
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"By taking advantage of in-store holiday specials, consumers should find slightly lower prices for whole turkeys and modest increases for things like milk and sweet potatoes," she reported last week. "We're expecting the bottom line to result in about the same price to slight increases overall for the traditional holiday meal this year over last year."
USDA is projecting the average price for wholesale turkeys this year to be just above $1 per pound, but Alexander says smart shoppers should be able to take advantage of store specials designed to bring shoppers through their doors in hopes of making up profits on other traditional holiday foods.
Last year wholesale turkey prices hovered around $1.10 a pound.