Recently, the shortage and sharp price increase of eggs across the United States have sparked concerns about food and grocery prices. However, in reality, food and grocery prices in the U.S. have been steadily rising over the past few years.
According to data released by the U.S. Department of Agriculture (USDA), food and grocery prices have risen by nearly 25% in the past five years.
A recent food security survey in Washington state shows that residents are increasingly feeling the pressure of rising food and grocery prices. Over 5,500 people participated in the survey conducted from August to October 2024, with 55% of them expressing feeling pressured when purchasing food and groceries. This percentage has seen a significant increase from previous years, with 49% in 2023 and 45% in 2021.
So, which states in the U.S. are burdened the most by the rising food and grocery prices for residents? And which states are least affected? The personal finance website WalletHub revealed the variations in the percentage of food and grocery expenditures relative to income for residents across the U.S. by analyzing prices of 26 common food and grocery items in 50 states, along with median household income data.
The analysis shows that residents in some states need to allocate a higher percentage of their income to purchasing food and groceries. The top ten states with the highest proportions are as follows:
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%)
Although the prices of food and groceries in these states may be lower compared to California or states in the Northeast, the proportion of income spent on food and groceries still ranks high due to lower incomes in these areas. For example, Mississippi has an average annual household income of only $53,000, below the national average of $74,600.
Meanwhile, residents in some other states spend a relatively lower percentage of their income on food and groceries. The bottom ten states in this ranking are as follows:
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%)
With a median income average of $118,000, New Jersey ranks last in the list, with residents spending only 1.5% of their income on purchasing food and groceries. Clearly, higher income levels alleviate the pressure of price increases.
David Ortega, an agricultural economist at Michigan State University, mentioned that low-income families are hardest hit by price increases as food purchases account for a higher percentage of their disposable income. Additionally, in remote areas, food and grocery prices tend to be higher due to higher logistics costs.
Regarding future price changes, Ortega noted that while inflation rates may slow down, prices will remain high. Factors such as avian flu, extreme weather, and rising labor costs continue to drive inflation. Policies like tariffs under the Trump administration could further exacerbate food price increases.
So how should one cope with rising prices? Ortega suggested the following tips:
1. Plan your shopping: Make a list and stick to it to avoid impulse buying.
2. Opt for store brands: Choosing private label brands can lower costs without compromising quality.
3. Look for deals and promotions: Compare prices across different stores and take advantage of promotions.
4. Be cautious with bulk buying: Bulk purchases may not always be the best choice as some items may perish before being used.
5. Eat before shopping: Shopping on an empty stomach can lead to unnecessary expenses.