Corinne Alexander, an agricultural economist at Purdue University, said in a news release costs are higher even though supplies are plentiful, because retailers are passing along higher energy and other costs.

Alexander said turkey production is up 6 percent from last year and the U.S. Agriculture Department predicts the wholesale price of whole turkey in the eastern market will be between 94 cents and 98 cents per pound. What consumers pay at the checkout will depend on each retailer's pricing decision, she said.

"Turkey is a favorite loss-leader item for grocery stores, where they'll offer you a coupon or a discount to give you a really great price on turkey," Alexander said.

The price increases on side items will vary, Alexander said, with cranberry and sweet potato prices expected to be lower while white potatoes and other vegetables and fruits will likely be higher.

Preparing the feast will be more expensive, too, with natural gas prices up 18 percent and electricity up 7 percent from 2007.

What's there to be thankful for, you may ask. Alexander notes the recent slide in gasoline prices and adds, "Although Americans eat very well, we spend only 9.8 percent of our average income on food."