Revealed: The states where your grocery bill could skyrocket–And where you can save big!
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As we navigate the aisles of our local supermarkets, the sting of the checkout scanner is felt more acutely in some parts of the United States than others.
The GrayVine community knows all too well that a fixed income doesn't stretch as far as it used to, especially when it comes to the essentials like groceries.
With the USDA reporting a nearly 25% increase in grocery prices over the last five years, it's more important than ever to understand where and why our grocery bills are ballooning.
A recent analysis by WalletHub, a personal finance website, has shed light on the states where residents are dedicating the highest percentage of their income to grocery shopping.
The study examined the cost of 26 common grocery items across all 50 states and compared these costs to the median household income to paint a picture of grocery affordability.
The findings are a wake-up call for many, particularly in states like Mississippi, where residents spend a whopping 2.64% of their income on groceries.
The list of states where grocery bills take the biggest bite out of budgets includes:
1. Mississippi (2.64%)
2. West Virginia (2.57%)
3. Arkansas (2.49%)
4. Kentucky (2.41%)
5. Louisiana (2.39%)
6. New Mexico (2.36%)
7. Alabama (2.34%)
8. South Carolina (2.27%)
9. Tennessee (2.23%)
10. Oklahoma (2.21%)
"While the cost of these groceries is probably lower than you would expect in maybe California or in the Northeast, the numbers are higher because they have less income to spend on those groceries," said Chip Lubo, WalletHub writer and analyst.
As an example, Mississippi’s average annual household income is just below $53,000, which is below the national average of $74,600 as per Lupo. Meanwhile, in New Jersey, the average median income is $118,000.
On the flip side, the prices of groceries were analyzed without accounting for the latest price spikes in egg prices due to shortages from the bird flu.
"You could probably expect spikes all across the board in all 50 states" for egg prices, Lupo said.
The states where residents spend the least percentage of their income on groceries are:
41. Hawaii (1.68%)
42. Colorado (1.67%)
43. Virginia (1.66%)
44. Minnesota (1.66%)
45. Utah (1.63%)
46. Connecticut (1.62%)
47. New Hampshire (1.60%)
48. Massachusetts (1.54%)
49. Maryland (1.54%)
50. New Jersey (1.50%)
Source: @abc15 / Youtube.
David Ortega, a food economist and professor at Michigan State University, explains that the impact of rising food prices isn't felt equally across the board.
"It is low-income households who are hit the hardest, as they spend a larger share of their disposable income on food," he said.
"These are the individuals who are having to make real adjustments in order to be able to put food on the table. Similarly, in states where median incomes are lower, grocery costs take up a greater portion of household budgets, making price increases more financially straining."
Food price inflation is also subject to regional variations due to factors like retail operating costs, consumer shopping habits, and transportation costs.
You might be interested: Inflation alert: Forget grocery prices, THIS essential is the real culprit
For example, areas that are farther from food production centers or distribution hubs may face higher prices due to increased shipping expenses.
The recent spike in egg prices, driven by the H5N1 bird flu, is a prime example of how specific events can lead to nationwide price increases.
With grocery prices up 1.9% in January from the previous year, and eggs experiencing the largest monthly price jump of 15.2%, consumers across all states are feeling the pinch.
While grocery inflation has moderated, prices remain high, and inflationary pressures continue.
Factors such as the ongoing impacts of bird flu on egg and poultry prices, extreme weather events affecting food production, and rising labor costs all contribute to the uncertainty of future food prices.
To help our GrayVine readers stretch their grocery budgets further, here are some savvy shopping tips:
- Plan ahead with a detailed grocery list to avoid impulse buys.
- Choose store brands for cost savings without sacrificing quality.
- Keep an eye out for deals and sales, and don't be afraid to shop around.
- Be cautious with bulk deals–they're not always the best value if food spoils before use.
- Shop on a full stomach to prevent hunger-driven spending sprees.
Recommended for you: The surprising state where egg prices have hit $10—will your state be next?
Have you noticed a significant increase in your grocery expenses? What strategies do you use to keep your food costs down? Share your experiences and tips in the comments below!
The GrayVine community knows all too well that a fixed income doesn't stretch as far as it used to, especially when it comes to the essentials like groceries.
With the USDA reporting a nearly 25% increase in grocery prices over the last five years, it's more important than ever to understand where and why our grocery bills are ballooning.
A recent analysis by WalletHub, a personal finance website, has shed light on the states where residents are dedicating the highest percentage of their income to grocery shopping.
The study examined the cost of 26 common grocery items across all 50 states and compared these costs to the median household income to paint a picture of grocery affordability.
The findings are a wake-up call for many, particularly in states like Mississippi, where residents spend a whopping 2.64% of their income on groceries.
Grocery prices in the United States have risen nearly 25% over the past five years, with notable impacts on household budgets. Image source: Maria Lin Kim / Unsplash.
The list of states where grocery bills take the biggest bite out of budgets includes:
1. Mississippi (2.64%)
2. West Virginia (2.57%)
3. Arkansas (2.49%)
4. Kentucky (2.41%)
5. Louisiana (2.39%)
6. New Mexico (2.36%)
7. Alabama (2.34%)
8. South Carolina (2.27%)
9. Tennessee (2.23%)
10. Oklahoma (2.21%)
"While the cost of these groceries is probably lower than you would expect in maybe California or in the Northeast, the numbers are higher because they have less income to spend on those groceries," said Chip Lubo, WalletHub writer and analyst.
As an example, Mississippi’s average annual household income is just below $53,000, which is below the national average of $74,600 as per Lupo. Meanwhile, in New Jersey, the average median income is $118,000.
On the flip side, the prices of groceries were analyzed without accounting for the latest price spikes in egg prices due to shortages from the bird flu.
"You could probably expect spikes all across the board in all 50 states" for egg prices, Lupo said.
The states where residents spend the least percentage of their income on groceries are:
41. Hawaii (1.68%)
42. Colorado (1.67%)
43. Virginia (1.66%)
44. Minnesota (1.66%)
45. Utah (1.63%)
46. Connecticut (1.62%)
47. New Hampshire (1.60%)
48. Massachusetts (1.54%)
49. Maryland (1.54%)
50. New Jersey (1.50%)
Source: @abc15 / Youtube.
David Ortega, a food economist and professor at Michigan State University, explains that the impact of rising food prices isn't felt equally across the board.
"It is low-income households who are hit the hardest, as they spend a larger share of their disposable income on food," he said.
"These are the individuals who are having to make real adjustments in order to be able to put food on the table. Similarly, in states where median incomes are lower, grocery costs take up a greater portion of household budgets, making price increases more financially straining."
Food price inflation is also subject to regional variations due to factors like retail operating costs, consumer shopping habits, and transportation costs.
You might be interested: Inflation alert: Forget grocery prices, THIS essential is the real culprit
For example, areas that are farther from food production centers or distribution hubs may face higher prices due to increased shipping expenses.
The recent spike in egg prices, driven by the H5N1 bird flu, is a prime example of how specific events can lead to nationwide price increases.
With grocery prices up 1.9% in January from the previous year, and eggs experiencing the largest monthly price jump of 15.2%, consumers across all states are feeling the pinch.
While grocery inflation has moderated, prices remain high, and inflationary pressures continue.
Factors such as the ongoing impacts of bird flu on egg and poultry prices, extreme weather events affecting food production, and rising labor costs all contribute to the uncertainty of future food prices.
To help our GrayVine readers stretch their grocery budgets further, here are some savvy shopping tips:
- Plan ahead with a detailed grocery list to avoid impulse buys.
- Choose store brands for cost savings without sacrificing quality.
- Keep an eye out for deals and sales, and don't be afraid to shop around.
- Be cautious with bulk deals–they're not always the best value if food spoils before use.
- Shop on a full stomach to prevent hunger-driven spending sprees.
Recommended for you: The surprising state where egg prices have hit $10—will your state be next?
Have you noticed a significant increase in your grocery expenses? What strategies do you use to keep your food costs down? Share your experiences and tips in the comments below!
