Is inflation gobbling up your Thanksgiving plans?

By Lauren Young

Nov 23 - This was originally published in the Reuters On the Money newsletter, where we share U.S. personal-finance tips and insights every other week. Sign up here to receive it for free.

Inflation-weary Americans should see the cost of a classic Thanksgiving dinner gobble less of their paychecks this year. That is because we are buying less of the meal's centerpiece dish, turkey.

The price tag of the traditional holiday meal, which also includes cranberries, sweet potatoes and stuffing, dropped for a second consecutive year, according to the American Farm Bureau Federation's annual survey released on Wednesday.

The average cost for a 10-person meal came to $58.08, down from $61.17 last year and a record $64.05 in 2022, Farm Bureau data shows.

That’s the good news. The bad news is the overall cost of hosting Thanksgiving is up, thanks to inflation. The typical host will shell out $431 on food, drinks and decor, a 19% increase from last year, according to a survey from Lending Tree.

What is on your Thanksgiving menu? Where are you seeing the biggest changes in food, drink and decor prices? Write to me at onthemoney@thomsonreuters.com.

HOME FOR THE HOLIDAYS

All three of our kids are coming home to New York for Thanksgiving this year – and they are traveling by train as well as by plane.

They will be in good company: About 1.7 million more people will travel this year from Tuesday, Nov. 26 to Monday, Dec. 2, compared to a similar period in 2023, travel group AAA says.

Americans are expected to set a new record for Thanksgiving travel, with nearly 80 million expected to hit the roads, catch flights and board cruises over the holiday period.

Betting on increased demand from Thanksgiving travelers, Uber launched "XXL" rides with extra trunk space this week. The ride-hailing company is trying to overcome a slowdown in its mainstay app-based taxi business.

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SHOP UNTIL YOU DROP?

My inbox is bursting with holiday shopping deals. But it looks like it is going to take more than a few emails and app alerts to nudge shoppers like me to open our wallets.

Overall holiday shopping is expected to grow at the slowest pace in six years, with mobile spending accounting for 53% of online holiday sales.

To lure consumers, companies such as Target are cutting prices on thousands of essential and gift items ahead of the holiday season.

But inflation is still a big hurdle. (Do you see a theme to this week’s newsletter?!?) Deloitte’s 2024 holiday retail survey found 70% of consumers expect to face higher prices this year, so they're being especially frugal.

I’ve been eyeing some holiday items, but I’m also parking them in my online shopping cart, just in case better deals emerge.

Do you have any tricks to share on ways to save? And, out of curiosity, how much do you plan to spend on holiday gifts? Write to me at onthemoney@thomsonreuters.com.

READ THIS BEFORE YOU PICK YOUR MEDICARE PLAN

The ins and outs of Medicare are always tricky.

Medicare Advantage plan marketers are trying to capitalize on changes that take effect next year in Medicare’s Part D prescription-drug coverage.

If signed up for traditional Medicare with a standalone Part D plan, you may find your premium jumping or see changes in deductibles or cost-sharing arrangements. That means it is important to re-check your coverage this autumn if you are in a standalone plan.

The same is true if you have a Medicare Advantage plan with drug coverage wrapped in with no extra premium – the terms of that drug coverage may be changing, too.

Here is what you need to know now.

A$K LAUREN

Are you wondering if you should lease or buy a new car? Are you wondering how to save for college? Send your money questions to onthemoney@thomsonreuters.com and I'll tap my extensive source network and braintrust for expert advice.

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(Reporting by Lauren Young; Editing by Rod Nickel)

((lauren.young@reuters.com ))