Reply #4: Cost of Thanksgiving soaring: Merrill Lynch [View All]

[ozymandius]

NEW YORK (Reuters) - The cost of Thanksgiving is soaring, according to investment bank Merrill Lynch & Co, which may help explain the gloom among U.S. consumers as they head into the holiday season.

Merrill Lynch(MER.N), the world's biggest brokerage and one of the most powerful names on Wall Street, calculated a Thanksgiving cost-of-giving index using the prices of traditional holiday meal items such as turkey, cranberries, sweet potatoes and pumpkin pie -- as well as the cost of flowers, gifts ranging from toys to clothing and electronics, plus gasoline, hotels, air fare, and greeting cards.

The index has risen 7.9 percent year-over-year in the approach to the festive season -- a huge swing from a drop of 4.4 percent a year ago. In fact, this is more than double the historical trend for this time of year and the second highest since 1999, said David Rosenberg, Merrill Lynch North American economist, in a report.

http://news.yahoo.com/s/nm/20071122/bs_nm/usa_economy_thanksgiving_dc