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Trendspotting: Greater percentage of income going to food now versus 10 years ago

By
Craig Levitt

Inflation is simply a fact of life. Prices for everything inherently go up. While people can get by without certain things in their lives, food is not one of them. What has become tricky is that while food prices go up, the average household income has remained relatively stagnant.    

New research by price-tracking website PriceListo, revealed that Americans spent a significantly larger portion of their income on groceries in 2024 than 10 years ago.

The study examined food inflation in America over the past decade, focusing on the rising cost of groceries. It analyzed the cost of living by state in 2024 compared to 2014, highlighting the states with the highest and lowest grocery prices relative to household income.

According to the findings, the average American household spent $13,653.36 annually on groceries in 2024, up from $10,247.76 in 2014. This marks a 33.3 percent increase in grocery spending over the past decade.

Meanwhile, the average household income has remained relatively stagnant, decreasing slightly from $68,996 in 2014 to $68,836 in 2024. As a result, the average percentage of income spent on groceries has risen from 14.9 percent in 2014 to 19.8 percent in 2024.

"These insights underscore the growing financial burden that rising grocery costs place on American households, especially in states where incomes haven't kept pace with inflation,” said a PriceListo expert. “Families are finding it increasingly difficult to manage their budgets as a larger share of their earnings goes toward basic necessities. To ease this financial strain, economic measures such as raising the minimum wage, expanding food assistance programs, and regulating prices should be implemented to reduce the burden of grocery costs on low- and middle-income families.”

Mississippi residents spend the greatest percentage of income in groceries at 30.8 percent, followed by Louisiana (28 percent). New Mexico, Alabama and Oklahoma round out the top five at 27.3, 26 and 25.8 percent, respectively.

Conversely, New Hampshire residents spend the lowest percentage of their income on groceries at 13.9 percent, followed by Maryland (15.2 percent). Massachusetts, New Jersey and Connecticut rounded out the bottom five at 15.6, 15.8 and 16.3 percent, respectively.  

Based on dollars spent, Hawaii ($17,234), Alaska ($16,969), California ($15,377), Nevada ($15222) and Mississippi ($15061) top the list. Spending the least were Wisconsin ($11,404), Iowa ($11,713), Nebraska ($12,126), Michigan ($12,178) and West Virginia ($12,332). 

Craig Levitt

Craig Levitt

About Craig Levitt  |  email

When his dreams of becoming a professional hockey player came crashing down due to lack of talent, Craig Levitt turned to journalism. He graduated from Hofstra University in 1992 and has covered various areas of the retail food trade since 1996. Craig joined The Produce News in 2017 and is now managing editor. In his spare time, Craig still plays men’s league hockey (poorly) and enjoys walking the aisles of his favorite supermarket with his wife and two daughters.

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February 4, 2025
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