This Fourth of July, Americans’ cookouts will be more expensive than ever before as everybody gathers for fireworks, food, and parades with friends and family.
Despite a significant decline from its peak of 9.1% in June 2022, inflation still exceeds the Federal Reserve’s 2% target, standing at 3.27% as of May. High inflation has put significant financial strain on most U.S. households, with grocery prices rising over 21% since 2021.
According to the National Retail Federation (NPR), American households are projected to spend a total of $9.4 billion on food for July 4 celebrations this year, averaging $90.42 per household on food items.
However, 60% of Americans are planning to spend less money than they did last year, with 3 in 5 stating that inflation is impacting their holiday plans, according to a WalletHub survey.
Each Fourth of July, Americans consume 150 million hot dogs and spend $4 billion on beer and wine.
In mid-June, supermarket inflation showed a significant decrease compared to the same period last year, with the Consumer Price Index (CPI) for food at home rising only 1%, down from nearly 6% a year ago.
However, cookout expenses this year are still expected to reach a record-high, with beer up 3.1%, beef up 5.7%, soda up 2.3%, and frankfurters up 7.3%.
According to the American Farm Bureau survey, the average cost for a group of 10 to host a cookout this year is $71.22, marking a 5% increase from last year and a 30% increase from five years ago, pushing the national cost to over $7 per person for the first time.
Meat, including ground beef, pork chops, and chicken breast, makes up half of the total cookout expenses, with ground beef averaging $12.77 for 2 pounds – an 11% increase from last year.
Pork chops have risen 8% nationally to $15.49.
One package of hamburger buns costs $2.41, a 7% increase from 2023, while a half-gallon of ice cream adds $5.65 to the grocery bill, also up 7% from last year.
Lemonade on the Fourth of July table costs $4.19 in total, marking a 12% increase from last year.
Depending on geography, the cost of cookout goods can vary.
For example, those in the Northeast will spend as little as $63.54 for a group of 10 people, while Southerners will spend an average of $68.33 and Midwesterners $68.26.
In the West, cookout expenses for a party of 10 will be nearly $1 per person higher than the national average, totaling $80.88.
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On the other hand, restaurants saw an increase as the mid-June CPI for food away from home rose by 4%, driven partly by rising labor costs.
For instance, a quarter-pound hamburger with cheese, tomato, and lettuce costs $2.16 to make at home, making it cheaper than the average restaurant price of $6.95 for the same size burger this holiday, according to a report.