Consumers spending more ahead of July 4th holiday weekend
Jun. 30—TUPELO — Like many Americans this Independence Day weekend, Kelsey Scott plans to be outside with family and friends.
"I plan to do a lot of grilling, ribs, chicken, a couple sides — things like that," he said.
Scott was doing a little midweek shopping at Palmer's Shoppers Value Foods but planned on coming back before the weekend.
But as Scott and millions of consumers have or will discover, it's going to cost more this year to celebrate the Fourth of July.
Personal finance website Wallet Hub in a survey said 84% of Americans plan to celebrate the 4th of July this year, with spending totaling $7.7 billion — with $1.4 billion on beer and wine.
However, the survey also found that 57% said inflation would affect their holiday plans, and 66% said they planned to spend less compared to last year.
Jason Palmer, co-owner of Palmer's Shoppers Value Foods, said so far consumers don't seem to be cutting back much of their purchases at the store.
"To be honest, I think everybody just knows it's just the way it is, and they're used to it now," he said. "I've had one or two complaints, but most people know it's just the world we're living in now."
Palmer said the store's shelves are mostly full, although there are still some products that are difficult to get. Still, he said consumers will find the essentials they'll need for their weekend barbecue and beyond.
The American Farm Bureau Federation said food prices overall have increased by more than a third this year, as the Consumer Price Index, a key gauge of inflation, accelerated by 8.6%, the fastest pace in over 40 years.
Ground beef has skyrocketed 36% from a year ago, while prices for boneless, skinless chicken breast, pork chops, and pork and beans jumped more than 30%.
A Wells Fargo survey showed hot dogs cost 12% more this year, while hamburger and hot dog buns have risen 10%. And according to Wallet Hub, Americans will be scarfing down about 150 million hot dogs.
Additionally beer is up 25%.
But there was some price drops — potato chips are 4% less, cheese is 13% lower, strawberries are 16% less.
Still, consumers who are grilling out for the weekend can expect to spend roughly 17% more on food overall.
Shoppers also will find smaller packages of some of their favorite items, even as prices rise. The phenomenon, deemed "shrinkflation," is nothing new but seems to have picked up momentum. With everything from sports drinks to cereal, orange juice to ice cream, chicken wings to toilet paper, Americans are paying more for less.
As the Wallet Hub study indicated, Ashley Henderson of New Albany is adjusting her plans a little this year. Usually, the Hendersons head to the beach for July 4th, but this year they're staying a little closer to home.
"We're going to the lake this year and, while those plans are the same as usual, we will definitely spend more on fuel with the higher gas prices," she said. "We have chosen not to do a beach trip this year because of the higher prices in general. But we'll pack lots of snacks and have fun in the sun either way."
But for Scott, he's not changing much, if anything of what he plans to do.
"This is about the family — you can't put a price on that," he said.
