Rising food costs and smart shopping tips guide holiday budgets
Holiday grocery shopping in 2025 brings a mix of higher prices and helpful discounts. After a short period of easing inflation, food-at-home prices are rising again. Grocery prices are now about 2.7 percent higher than last year and over 25 percent higher than five years ago. This rise is linked to labor shortages, supply challenges and tariffs increasing import costs. Even with these pressures, retailers are offering discounts and promotions to support families during the festive season.
Turkey remains a key holiday staple, but prices are higher this year. The average wholesale cost for frozen whole hen turkeys is projected at $1.32 per pound in 2025, which is a 40 percent increase from last year. This increase is largely due to renewed outbreaks of avian influenza and avian metapneumovirus, which reduce flock numbers and slow rebuilding efforts. Despite this, shoppers should find enough turkeys in stores because retailers often offer them at reduced prices to attract customers.
Beef roasts are also more expensive. Prices have increased more than 18 percent compared to last year as cattle supplies remain tight following years of drought. Strong consumer demand adds to the upward pressure, making beef one of the costliest items on holiday menus.
Fresh vegetables such as potatoes, squash and yams have seen moderate price increases. Choosing fresh produce instead of canned items helps avoid tariff-related packaging costs, as canned vegetables are nearly 5 percent more expensive. Desserts are also a mix of good and bad news. Pie prices are steady, rising only 0.4 percent from last year, but chocolate remains costly because global cocoa supplies are tight.
Wine is one of the few bright spots, with prices down slightly. Imported varieties may still cost more due to tariffs. Coffee prices, however, have climbed nearly 18 percent because of climate-related supply constraints and higher import costs.
Major retailers are helping stretch holiday budgets. Walmart is offering a Thanksgiving basket for under $4 per person, while Aldi has a complete holiday meal for $40. Digital coupons, loyalty apps and price-matching programs provide additional savings.
Planning ahead, shopping early, choosing store brands, using digital tools and sharing dishes through potluck meals can help families stay on budget while enjoying festive celebrations.
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