Record High Fourth of July Cookout Costs: Inflation Drives Up Prices
The cost of hosting a Fourth of July cookout has reached a “record high” in 2024, due in large part to rising inflation, according to a survey conducted by the U.S. Farm Bureau. The average cost for a cookout serving 10 people is expected to be 5 percent higher than last year, coming in at $71.22. This increase is a significant jump from the average cost of $67.73 in 2023.
The survey reveals that the prices of essential cookout items have experienced notable increases. Ground beef prices, for example, have surged by 11 percent, with 2 pounds now costing $12.77. Pork chops have also seen a rise of 8 percent, reaching a price of $15.49. However, chicken prices have fallen by about 4 percent since last year, coming in at $7.83 for 2 pounds.
Interestingly, the survey highlights that meat products, including chicken breasts, pork chops, and hamburger meat, account for over 50 percent of the total cost of a summer cookout. This emphasizes the significant influence that meat prices have on the overall expense.
In addition to meat, several other products have experienced price hikes. Hamburger buns, potato chips, cheese, ice cream, lemonade, and strawberries have all seen increases in their prices. The only exception is homemade potato salad, which has actually decreased by 4 percent.
Farm Bureau Chief Economist Roger Cryan acknowledges that these higher prices are impacting families’ budgets and reflects the challenges they face. Cryan points out that farmers are also feeling the effects of high prices as they are price takers rather than price makers. Despite only receiving 15 percent of the retail food dollar, farmers still have to contend with elevated fuel, fertilizer, and supply costs.
This year’s increase in Fourth of July cookout costs is not an isolated phenomenon. A report by Rabobank, an international bank, predicts that the average cost of a cookout for 10 people will surpass $99, up from $97 the previous year. The report identifies beverages and beef as the most expensive items.
While the overall U.S. consumer price index (CPI) has been trending lower in recent months, concerns about inflation persist among many Americans. A recent poll reveals that inflation’s impact on the economy is one of their top concerns heading into the upcoming election.
It’s worth noting that inflation reached its peak at 8.9 percent in June 2022, prompting the Federal Reserve (Fed) to implement a series of interest rate hikes. Within two years, the benchmark rates increased from 0.25 to 0.50 percent to 5.25 to 5.50 percent. However, there is speculation that the Fed may begin cutting rates soon as inflationary pressures appear to be cooling down.
Federal Reserve Governor Michelle Bowman responded to this speculation by stating that now is not the time to lower interest rates. Instead, she suggested that the central bank could raise rates even further if incoming data indicates a sustainable move toward their 2 percent inflation goal.
During the recent Federal Open Market Committee meeting in mid-June, the central bank decided to keep interest rates unchanged. The committee’s statement acknowledged that while inflation has eased over the past year, it still remains elevated. They did note some modest progress toward their 2 percent inflation objective in recent months.
In conclusion, the rising costs of hosting a Fourth of July cookout are primarily driven by inflation. Meat prices, in particular, have significantly contributed to the overall expense. While concerns about inflation persist among Americans, the Federal Reserve has yet to make any major changes to interest rates but remains vigilant in monitoring inflation levels. As we approach the upcoming election, the impact of inflation on the economy continues to be a key concern for many.
