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Though consumers will pay less money for Thanksgiving dinner this year due to deflating food prices, economists say the drop in prices is doing a number on the US economy.
Food commodity prices have dropped more than 20% since the beginning of 2015, according to research from Goldman Sachs, which is dragging inflation down and keeping wages stagnant, Bloomberg reports.
Fresh food prices such as a dozen eggs have fallen by as much as $1, a gallon of milk has dropped by 40 cents and the price of ground beef has dropped by roughly 50 cents, according to stats from CBS.
The culprit? America’s food supply. The country’s food production is keeping pace with past years, even though demand overseas has drastically dropped. Not only is America oversupplying, but the strong US dollar has made food expensive in overseas markets like China, shrinking grocers profit margins. [Bloomberg]
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