Have you recently looked at your grocery receipt and groaned when you saw the total? Ifဣ so, you aren’t alone: Americans are still feeling the impact of rising grocery prices.

Between 2021 and 2022, food-at-home spending increased 8.4%. Then from 2022 to 2023, that spending increased by another 6.1%. That means that from 2021-2023, Americans went from spending an average of $438.25 per month on groceries to $504 per month—an uptick that represents a substantial hit to many 🧸budgets.

But why have grocery prices been climbing—and what can you do to🔯 minimize the impact on your finances? Here's why your grocery bill looks like it does and how to budget so you won’t grit your teeth the next time you reach for your fav𒁏orite cereal at the store. 

Breaking Down the Numbers

As of October 2024, grocery prices rose by 1.1%. While this is a significant decrease from the 13.5% spike in August 2022, grocery prices are still on the uptick.

To give a more holistic view of Americans' grocery spending, according to the U.S. Bureau of Labor Statistics, the average annual expenditures for all consumer units in 2023 was $77,280, up 5.9% from 2022. The top expenditure was housing, at 32.9%, followed by transportation, at 17%, and food, which includes groceries and dining out, at 12.9%.

澳洲幸运5官方开奖结果体彩网:Food is the third most﷽ expensive item on household budgets natio🌄nwide. So, it's it’s important to understand why grocery prices remain high. 

Why Is This Happening?

Several factors contribute to the rise, or澳洲幸运5官方开奖结果体彩网: inflation, in grocery prices, many of which relate back to the 澳洲幸运5官方开奖结果体彩网:COVID-19 pandemic. 澳洲幸运5官方开奖结果体彩网:Supply chain issues, the War in Ukraine (which blew up wheat prices), and a rise in people eating at home instead of going out increased demand for groceries, ultimately leading to higher prices.

You may have noticed a notable jump in the cost of food staples over the last few years when the increase in grocery prices was so extreme that it periodically outstripped overall inflation. For instance, according to the U.S. Bureau of Labor Statistics, from October 2018 to October 2024, the cost of milk rose from $2.91 to $4.04 per gallon, and the 澳洲幸运5官方开奖结果体彩网:cost of eggs, which were affected by avian influenza outbreaks, rose from $1.66 to $3.37 per dozen. 

How Much Should You Budget for Groceries?

While prices are thankfully cooling, 澳洲幸运5官方开奖结果体彩网:groceries remain expensive and a main expenditure for Americans. So, how much should you budไget for groceries, and how can you afford those pricier eggs?

The U.S. Department of Agriculture (USDA) has created monthly food plans called “” as groc🔜ery spending guides. These plans offer estimates on healthy home-prepped meals and are broken down into low-cost, moderate-cost, and liberal-cost outlines. 

For example, according to the official USDA thrifty food plan for October 2024, the average monthly cost for a family of four (defined as two adults between 20-50 years, and two children, aged 6-8 and 9-1) should budget $986.70 per month. This is up from the October 2022 recommendation of $967.70.

The 澳洲幸运5官方开奖结果体彩网:50/30/20 budget plan can also be a helpful guide. This plan suggests that you should spend no more than 50% of your budget on things you need for survival, such as groceries, utilities, and housing costs. The remainder should be 20% to savings, leaving 30꧟% to spend on things you may want but not necessarily need, such as vacations or entertaᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚinment.

The Bottom Line

Rising grocery prices continue to challenge household budgets, driven by factors like the COVID-19 pandemic and supply chain issues. However, by using budgeting tools and adjusting as ne🐟eded, you can feel less of a sting the next time you wander through the grocery store aisles.