TOLEDO, Ohio — With record-high inflation rates and gas prices passing $5 per gallon, U.S. consumers may not be used to paying more, but they have come to expect it.
With Independence Day just around the corner, consumers should be prepared for a more expensive holiday weekend.
The average cost of a cookout is up 17% from last year, according to the American Farm Bureau Federation (AFBF). Supply chain disruptions, the war in Ukraine and inflation have caused the prices of Fourth of July favorites like hot dogs, potato salad and ice cream to increase, bringing the total cost of a cookout for 10 people to an average of $70.
"Despite higher food prices, the supply chain disruptions and inflation have made farm supplies more expensive; like consumers, farmers are price-takers not price-makers," AFBF Chief Economist Roger Cryan said. "Bottom line, in many cases the higher prices farmers are being paid aren't covering the increase in their farm expenses. The cost of fuel is up and fertilizer prices have tripled."
Ground beef saw the largest price increase of foods examined, rising 36% to $11.12 for two pounds.
Consumers are not the only ones affected by the increases. With restrictions on Russia and Belarus's fertilizer exports and other countries--including Ukraine--tightening their belts on exports, farm supplies have also increased in cost making agricultural production more expensive.
AFBF President Zippy Duvall commented on the greater implications of increased food production costs:
"The big impact of a single event in Ukraine shows how dependent the world is on stable, productive agriculture," he said.
Many will continue their Fourth of July traditions this weekend--cookouts included. But, like many other goods, foods, and experiences, they'll be more expensive than usual.
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