Despite Decreasing Inflation, July 4 Cookouts Will Still Cost More This Year

While the fireworks fill the nighttime sky, July 4 cookouts might have their own spectacular impact on consumers' wallets. Even though some economic indicators are showing positive news, consumers are not yet reaping those benefits when checking out at the grocery store. According to a recent Wells Fargo Agri-Food Institute report, the money spent on that summer holiday celebration will put a dent in your bank account.

Although the Wells Fargo report acknowledges that lessening inflation is good news, its impact is not having an immediate effect on this year's July 4 celebrations. Prices for sirloin steak, bread, potato chips, cookies, cheese, ice cream, and beer are higher. The various increases stem from supply issues, environmental impacts, and processing costs. Companies are choosing to pass along these increases to the consumer.

Some food cost news is positive. Sectors like eggs, milk, chicken, and ground beef appear to be better buys. Egg prices have dropped as the industry recovers from the Avian Flu outbreak. Ground beef might still be priced higher than in years past, but it is far less than the 2022 16% inflation rate. Even though ice cream prices are higher, milk costs less. Maybe it is time for consumers to learn to make homemade ice cream to save on spending.

Overall, it appears that July 4 cookouts will be more expensive. Whether consumers choose to splurge on a huge feast or cut back on the food spread remains to be seen.

From that bowl of ice cream to bags of potato chips, many celebratory July 4 food staples are costing more in 2023. While Food Dive notes that rising July 4 food costs aren't necessarily new, consumers are still adjusting to the effect on their bank accounts. As companies continue to pass on their costs to the consumer, it will take time to see the direct impact of the economy's slowing inflation.

Although rising costs is never a pleasant conversation, the Wells Fargo Agri-Food Institute report does predict that consumers may be willing to spend that extra dollar. Between job growth and wage improvements, consumers have a positive outlook and are ready to celebrate. They might not be happy with the increased cost of their six-pack of beer, but they are excited to crack open that can for the holiday celebration.

Even though many sectors have seen higher prices, there are ways for consumers to stretch their purchasing dollars. From swapping ground beef for sirloin or choosing to bake cookies versus buying, the conscious consumer can find shortcuts to frugally budget for the holiday celebration. The cost for that cookout might be higher than last year's $7-per-person average. Still, it doesn't appear as though everyone will be priced out of the festivities.