Food Insecurity and Grocery Price Increases
Statistical analysis highlights the severity of grocery price hikes, especially since the pandemic. A prominent aspect of post-pandemic inflation has been the rise in what the U.S. Bureau of Labor Statistics’ Consumer Price Index terms “food at home,” or groceries.
Uniqueness of Grocery Costs
Groceries are distinct in two important ways:
- They fulfill a basic need, as nearly everyone purchases groceries unless relying solely on restaurants or living in institutions.
- They offer many substitution options, such as choosing a cheaper cut of meat, switching from brand names to store labels, or opting for regular instead of organic products.
While groceries are essential, a variety of choices exists at different price points, unlike housing or utilities.
Government Data on Grocery Prices
Government data gives valuable insights into grocery cost trends. Besides CPI data, the Department of Agriculture releases monthly food cost quartiles reflecting spending on various grocery baskets.
Prices were relatively flat from 2015 to 2020, then rose sharply in 2021 and again in 2022. Adjusted for inflation, prices have remained fairly stable since 2023.
Over the past decade, the cheapest quartile's grocery prices climbed 55.8% before adjusting for inflation.
Summary
Grocery prices surged notably after 2020, challenging households’ food security, though inflation-adjusted prices have stabilized recently.