U.S. Grocery Prices Surge 20% Since 2020

Grocery prices in the United States have risen sharply, increasing by 20% since 2020, according to the Bureau of Labor Statistics. By 2023, the average American household spent approximately $270.21 weekly on groceries, based on data from the U.S. Census Bureau.

States with the Highest Grocery Costs

Hawaii and Alaska lead the nation in grocery expenses, with average weekly costs of $334 and $329, respectively. Their heavy reliance on imported food from the mainland significantly raises shipping costs, driving up prices for consumers.

California ranks third, with residents spending an average of $298 per week on groceries. The overall cost of living in the state is 38.5% above the national average, according to Debtwave, making it one of the most expensive places to live in the country.

Mississippi also reports high grocery costs, with residents paying $291 weekly—the fifth highest in the U.S., according to Visual Capitalist.

Despite this, Mississippi has a poverty rate of 18%, the second-highest in the nation, according to the U.S. Census Bureau. New Mexico faces a similar challenge, with high food costs exacerbating economic struggles in one of the country’s poorest states.

In contrast, Midwestern states like Nebraska, Iowa, and Wisconsin have some of the lowest grocery bills in the country, ranging from $231 to $235 weekly. These states benefit from being major agricultural producers, which helps keep food prices lower for residents.

FTC to Investigate Grocery Pricing

In August 2024, Federal Trade Commission Chair Lina Khan announced plans to investigate grocery pricing practices. The investigation aims to address potential factors driving the sharp rise in food costs, including supply chain challenges and pricing policies.

As households nationwide continue to feel the pinch of rising food prices, the disparities between states highlight the complex interplay of geography, economic conditions, and agricultural production in determining grocery costs.