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Nothing says Independence Day like an old-fashioned barbecue.
In keeping with tradition, most Americans — about 60% — plan to grill this weekend, and 53% will be gathering with friends and family, according to a recent report by market research firm Numerator.
“Consumers want to celebrate this summer for a number of reasons, and food is key to that,” said Carol Orr-Flynn, food and agribusiness analyst and author of Wells Fargo’s July 4th Food Inflation Report.
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However, with burgers, chips, soda, and side dishes rising in cost, revelers will be spending a lot more than they did last year.
The Consumer Price Index, a key inflation measure, rose 8.6% in May from a year ago, the highest increase since December 1981, driven by price increases in nearly all areas.
Food costs alone rose 1.2% in May, bringing the annual gain to 10.1%.
And it’s not just staples like meat and bread that are getting more and more expensive. Inflation has caused many food and beverage companies, including Coca-Cola and PepsiCo, to raise prices for drinks and packaged goods as well (or make their packaging smaller, also known as “deflation”).
In general, the cost of cooking out for a party of 10 It is up 11%, according to an Aure-Flynn report.
Other expenses associated with the Fourth of July weekend are also up — including the price of fireworks, which is up about 35%, and the propane fuel used to power gas grills, which is up 26% from last year, according to a separate analysis by Personal . Finance website TheBalance.com.
Higher fuel prices could mean shorter vacation trips
Of course, anyone who hits the road will encounter prices nearing a record high at the gas station.
Fuel oil posted a monthly gain of 16.9% in May, the US Bureau of Labor Statistics reported, pushing the 12-month increase to 106.7%.
More than half, or 55%, of Americans still say they travel for vacation, according to a report by travel website The Vacationer — an 8% increase from last year.
Consumers, for their part, are falling behind because of rising costs: 39% plan to buy less than they had in previous years and 27% said they would travel shorter distances due to higher gas prices, Numerator found.
5 ways to save 4th of July expenses
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Here are five ways you can try to cut your vacation costs without sacrificing the festivities, according to Aure-Flynn:
- Look for the value. Give your barbecue budget an extra boost by planning your menu around the best value you can find, she said. Frozen patties are often less expensive to buy than fresh ground beef, and while chicken prices are up 17% year over year, pork was a relative bargain, she said.
- Scout sales. Generic brands are usually much cheaper than their “premium” counterparts and just as good, but brands may offer 4th of July discounts to build loyalty, so it pays to be aware of price changes, Aure-Flynn said. “There can be specials this way, too.”
- Shop what’s in season. Fortunately, summer fruits and vegetables are well available at this time of year, which has led to lower prices in the produce divisions. “Most of the products are in season, so there are deals out there,” Ori-Flynn said.
- cost sharing. Dividing the plates gives your guests a chance to share and leaves more room for homemade alternatives, which can be a great way to save money on prepared sides and baked goods. For example, try making lemonade instead of buying soda, as Aure-Flynn suggested.
- Buy in bulk. When it comes to the rest of the items on your list, you can save even more by buying in bulk. Joining a wholesale club like Costco, Sam’s Club, or BJ’s will often give you the best price per unit on condiments and non-perishable goods.
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