Biden's Christmas Gift To America Will Burn A Hole In Household Budgets

As President Joe Biden prepares to leave office in January, his administration's legacy of surging inflation has delivered another year of increased Christmas food prices for Americans.

Various Christmas meal staples will be costlier this year, according to an end-of-year report from Expana, the world's largest IOSCO-assured agrifood price reporting agency. Expana's Main Meal Index, which tracks the prices of popular holiday grocery items such as shrimp, beef, pork, lamb, carrots, and potatoes, increased by 2.3% year-over-year.

Expana's "Gingerbread Index," which follows the prices of wheat, sugar, butter, eggs, cassia, and ginger, rose by 5.5% in November. The average price for bone-in hams also rose to $0.91 per pound last month—a staggering 8.3% increase from this time last year.

The average marketplace prices of potatoes experienced a slight uptick in November as well, increasing by 1.6% year-over-year to $0.50 a pound, according to Expana. Meanwhile, turnips experienced a 1.4% price increase at $1.45 per pound, while sweet potato prices rose by an average of 2.6% in November, reaching $0.50 per pound.

Prices have increased dramatically since President Joe Biden took office in January 2021, with inflation hitting a peak of 9.1% in June 2022—the same year that food prices in the U.S. increased faster than any year since 1979, according to the United States Department of Agriculture. 

Although inflation has cooled throughout 2024, it has remained above the federal government's 2% target—meaning many businesses and consumers in the U.S. have continued to experience financial strain brought on by the stubbornly high prices under the Biden-Harris administration. Some economists have attributed hefty government spending under the current administration to fueling high inflation rates.

The Consumer Price Index, a measure of the price of everyday goods, rose 2.7% in November, according to the Bureau of Labor Statistics (BLS). The food index also rose last month, increasing by 0.4%, the BLS data shows.

The index for meats, poultry, fish, and eggs increased by 1.7% in November, with the index for beef increasing by 3.1% and the index for eggs rising 8.2%, according to the BLS. The price of eggs alone surged year-over-year, costing $3.65 for a carton of a dozen large grade A eggs in November, which is up from $2.14 in November 2023, according to Federal Reserve Economic Data (FRED). The average cost of a dozen eggs was $1.48 in December 2020, according to FRED.

Beyond the grocery store, economic turbulence has left a noticeable mark on American retail. Major store closures have accelerated as high operational costs and declining foot traffic push some retailers to the brink. Dollar General and Dollar Tree, traditionally resilient during economic downturns, have reported reduced earnings and lowered forecasts. 

Executives from both companies cited increased theft and declining demand among lower-income consumers as key challenges this holiday season. Meanwhile, middle-market retailers like Bed Bath & Beyond and Party City have shuttered hundreds of stores nationwide as they grapple with bankruptcy filings and efforts to streamline operations.

These retail closures reflect a broader struggle among U.S. consumers who are grappling with growing financial pressures. The Federal Reserve reported in November that total consumer debt in the United States reached $17.6 trillion, marking a new record. Much of this debt stems from skyrocketing credit card balances, which surpassed $1.3 trillion for the first time. With interest rates on credit cards now averaging over 20%, households are facing the dual burdens of rising living costs and costly debt repayment—factors that are eating into holiday budgets.

Despite these challenges, consumer spending during the winter holidays this year is projected to reach an average of $902 per person—a record high—across food, gifts, decorations, and other seasonal items, according to a survey from the National Retail Federation. However, experts caution that this spending growth is being driven largely by inflation rather than a meaningful increase in discretionary income.

Other holiday-related goods have also increased in cost, including Christmas trees. Consumers are projected to spend an average of $79.31 on real Christmas trees this year, about $4 more than in 2023, according to Finder. Christmas tree sales have dipped over the past few years as consumers scale back on discretionary spending, a trend mirrored in forecasts from the Freedonia Group, which predicts an annual 1.5% decline in demand for Christmas trees through 2028.

The ripple effects of economic strain extend beyond household finances to community traditions. In many cities, smaller retailers and local markets that often host holiday pop-up shops and seasonal events are cutting back due to tighter budgets. In addition, nonprofits and charities, which rely heavily on year-end donations, have reported reduced contributions, citing donor fatigue and economic uncertainty.

Food banks across the nation are also facing unprecedented challenges, with demand surging as more families struggle to afford basic necessities. According to Feeding America, food banks served 60 million people in 2024, a number close to the record highs seen during the height of the pandemic. 

Many food pantries report shortages of key staples, such as canned goods and proteins, as they work tirelessly to keep up with the growing demand. Volunteers and organizers emphasize the need for additional donations and support to ensure no family goes without a meal this holiday season.

For many Americans, the joy of the season is being tempered by the ongoing burden of rising costs and financial insecurity. Families are being forced to make difficult choices—paring back holiday celebrations, foregoing traditional meals, or relying on community resources like food banks and charity drives. The festive spirit, while resilient, is increasingly marked by a sense of adaptation and perseverance. As households navigate this challenging landscape, the collective hope remains that brighter economic conditions will return, allowing future holidays to be celebrated with greater abundance and peace of mind.

Originally published at WND News Center