Food Insecurity: Understanding Grocery Price Hikes
Statistical data sheds light on the significant rise in grocery prices, especially since the pandemic. A key factor in post-pandemic inflation has been the increase in "food at home," a term used by the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI) to describe groceries.
Uniqueness of Grocery Prices
Groceries stand out because they satisfy a basic human need. Unless individuals rely exclusively on restaurants or institutional food sources, groceries are essential purchases. Additionally, groceries offer many options for substitution — such as choosing a cheaper cut of steak, opting for store brands instead of name brands, or switching from organic to regular products. Unlike housing or utilities, groceries provide a wide range of choices across various price levels.
Government Data Insights
The Department of Agriculture publishes monthly data on four food cost quartiles to represent different spending levels on typical grocery baskets. This data, alongside CPI figures, helps track grocery price changes over time.
Grocery Price Trends Over a Decade
- From 2015 to 2020, grocery prices remained relatively stable.
- Prices surged sharply in 2021 and rose again in 2022.
- Since 2023, when adjusted for inflation, grocery prices have stayed fairly steady.
In the past decade, the cheapest quartile saw a 55.8% increase in grocery prices without inflation adjustment.
These trends highlight the substantial impact of inflation on essential food costs over recent years.
Author's Summary
The post-pandemic grocery price surge, while steep, has stabilized since 2023 when inflation is considered, though lower-income shoppers still face persistent cost challenges.