Companies and Brands

See How Much the Average American Grocery Bill Went Up This Year

Andrew Dupont

Published: November 15, 2023 11:12 am

Buying groceries is a part of life. We have to eat. There was once a time when it felt wasteful to go out to eat meals because of how expensive it was. Well, that might be changing soon. Inflation rates have made it hard for the average American family of four to keep up. Of course, it’s all relative to how many people you have in your home, where you shop, and what brands you buy. It’s also important to think about where you live. People who live in Hawaii pay more than any other state for groceries because they’re an island. It costs more to ship food to them, thus the price increase. For Americans, there’s been a huge price increase in the monthly grocery bill just in the last year.

How Much Have Grocery Prices Risen in the Last Year?

In 2022, the grocery bill for an average American family of four was $325 per month. That’s assuming everyone eats a regular breakfast, lunch, and dinner. In 2023, however, that has gone up $100 per month, to a new total of $425. That’s around a 71% price increase in monthly groceries in just one year. Unfortunately, because of multiple supply chain disruptions that have taken place in 2023, prices surged.

There has also been an increase in the cost of monthly rent, something stores have had to take into account when pricing goods. Grocery prices aren’t the only thing that’s gone up in the last year. Interest rates on homes, interest rates on cars, and housing rents are just some of the other things that have shot up in price since the end of 2022.

What Stores Are the Most Expensive to Shop For Groceries?

If you’re looking for the cheapest possible grocery stores, you’re going to want to avoid these. First off, don’t go to Erewhon Market in Southern California if you’re looking to save money. This chain started to become a place to shop thanks to many celebrities posting about it on social media. The publicity has caused the chain to raise prices, knowing people will still come thanks to their brand.

Another place to avoid if you want to save money is Whole Foods. It’s sad because Whole Foods is known for having healthier options than many other stores. With healthy options comes a bigger price tag.

Natural Grocers is another place to not go to for your grocery needs if you’re looking to save. Like Erewhon and Whole Foods, Natural Grocers provides healthy, quality food. Unfortunately, with that comes a higher bill. There are pros to shopping at places like Kroger (NYSE: KR). The trendier spots are fun to go in and hang out at, but the monthly grocery bill will be higher for the average American.

Will Grocery Bills Drop in 2024?

The experts at the USDA have given a wide range of what might happen to grocery prices in 2024. The current outlook is grocery prices can fluctuate as much as a decrease of 5.5% up to an increase of 7.8%. There’s a chance prices could go down in 2024, but there’s a much more likely chance they rise. As of now, it appears the most likely scenario is a slight rise of 1% in prices in 2024.

This will be a much-needed change of pace, as in 2022 food prices rose 11.4%. Of course, this is partly due to the end of the COVID-19 pandemic. Unfortunately, it looks like restaurant prices will continue to rise. The agency predicts the cost of food sold to restaurants will rise between 2.2% and 6.7%, with the most likely outcome being a 4.4% increase.

Tips to Save on Groceries Bills For Americans

In a world where everyone is trying to save money, one of the easiest ways to is actually through your groceries. When you go to the store, make a list, and only follow what’s on your list. As consumers, one way we spend more money than we anticipate is by making impulse purchases from the store. Let’s say you add six items to your cart you weren’t planning on buying and each item costs an average of five dollars. Right there, that’s an extra $30 you could have saved. If you do this during the four weeks of the month, you’re spending an extra $120 on groceries.

Another way to save is to only buy what you need to cook, not what you think you’ll end up needing. How many times have you purchased something, let it sit in the refrigerator or cabinet, and it goes bad without you even touching it? Reading the recipe list and only purchasing exactly what you need will save you tons at the store. It doesn’t look like grocery prices are going back to what they once were, but you can be proactive and save money by following these steps.