FOX Business’ Madison Alworth discusses July 4th barbecue costs on ‘Varney & Co.’
Americans are paying a record high cost to host their July 4th cookouts this year as inflation, like the weather, is still hot.
According to the American Farm Bureau Federation (AFBF), a traditional Independence Day barbecue for 10 will cost $71.22, up from $59.50 in 2021. The highest prices for burger meat, buns, cheese and sides favorites like fries all add up to a painful bill to fire up that grill.
“Nationally, this means we’re crossing $7 per person for the first time, with the total meal coming in at $7.12 per person,” said AFBF economists Bernt Nelson and Samantha Ayoub. “Only two dishes went down in price while everything else on your table went up, on average. Your grocery bill may be a shock, but it’s in line with the inflation that has rocked the economy — including the farm economy — for several years. last .”
AFBF’s market basket survey enlisted volunteers from around the country to catalog the prices of a full, homemade meal of cheeseburger, chicken breast, pork chops, fries, homemade potato salad, lemonade fresh squeezed, chocolate chip cookies and, of course, ice cream. .
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An American family sits down for a 4th of July barbecue. (monkey business images via / iStock)
According to the AFBF, meat is the biggest part of your barbecue budget, accounting for about half of the total cooking cost.
Burgers are the most expensive: Two pounds of beef cost an average of $12.77, up from $8.20 just three years ago. Blame the overall cattle inventory, which is the lowest it has been in 73 years, while beef in cold storage is also at record levels, contributing to higher prices.
Pork chops are also more expensive, up 8% nationally compared to last year. Three pounds of pork chops will cost an average of $15.49 and $19.91 in California, where the state banned the sale of meat in the state from animals whose production did not meet California animal welfare standards, regardless of where they were raised , AFBF said.
The good news is that two kilograms of chicken breast will cost an average of $7.83, down 4% since 2023 and less than 13% from the record high set in 2022 amid a bird flu outbreak.
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Ground beef, burger buns, pork chops and American cheese have all become more expensive over the past four years, but chicken prices are cheaper. (/Fox News)
Moving on to adjustments, burger buns will cost an average of $2.41 at the store, up 7% year over year. American cheese will cost about the same as last year, rising just 1% to $3.57.
Lemonade is 12% more expensive, averaging $4.19, because its ingredients are more expensive. Lemon production has suffered after an outbreak of citrus greening disease late last year in California, where most US lemons come from, driving up prices. Sugar is also more expensive, thanks to lower global production and higher tariffs on imports from Mexico.
AFBF’s market basket is rounded out with side dishes and treats, including fries, potato salad, ice cream and chocolate chip cookies.
A large bag of chips costs an average of $4.90, an 8% increase over last year. Potato salad is one of two dishes, along with chicken breast, that is the least expensive, down 4% from last year. Prices for both potatoes and eggs have fallen, although egg inventories are still recovering from the bird flu epidemic and prices are higher than historical rates.
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Lemonade, chips, ice cream and cookies have gone up in price over the past four years, while potato salad is cheaper. (/Fox News)
Chocolate chip cookies are about 2% more expensive, costing $1.99. A half gallon of ice cream is up 7% from last year, costing an average of $5.65.
Although prices have risen overall, the latest inflation reports have shown the economy cooling slightly in what officials hope will be a continuing trend. Federal Reserve Chairman Jerome Powell expressed optimism on Tuesday that inflation was on the decline, based on consumer price index reports from April and May.
“I think the latest reading, and the one before it to a lesser extent, suggests that we are returning to a disinflationary path,” Powell said at a central bank forum in Sintra, Portugal. “We want to be more certain that inflation is moving steadily to 2% before we start the process of easing policy.”
Officials voted at their most recent meeting in May to hold interest rates steady in a range of 5.25% to 5.5%, the highest level since 2001. Although policymakers left the door open to cutting rates later this year in their post-meeting statement, they also stressed the need for “greater confidence” that inflation is falling before easing policy.
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Since then, there has been some evidence that inflation is beginning to moderate again. May’s personal consumption index showed inflation eased slightly to 2.6%, from a peak of 7.1%. At the same time, core prices — which are watched more closely by the Fed because they strip out volatile measures such as food and energy — also rose 2.6%, the slowest annual rate since March 2021.
“This represents a really significant advance,” Powell said. “We’ve made a lot of progress. We just want to understand that the levels we’re seeing are a true reading of what’s going on with core inflation.”
FOX Business’ Megan Henney contributed to this report.