Food insecurity: Numbers show severity of grocery price hikes
Statistical data sheds light on the sharp rise in grocery prices that has persisted since the pandemic. Among the lasting signs of post-pandemic inflation are the increases in what the U.S. Bureau of Labor Statistics defines in the Consumer Price Index as “food at home” — that is, groceries.
Groceries hold a special place in household economics. They meet a fundamental human necessity, and nearly everyone buys them, except those eating exclusively in restaurants or living in institutional facilities. Additionally, grocery shoppers can make numerous substitutions to adjust to price changes — selecting a cheaper meat cut, switching to store brands, or opting for conventional instead of organic products.
While groceries are indispensable, the range of pricing options distinguishes them from essentials such as housing or utilities. This diversity allows consumers some flexibility in managing rising costs.
Government insights on food costs
Government data provides an important overview of how grocery costs evolve. Along with the CPI, the U.S. Department of Agriculture releases monthly reports that divide grocery spending into four quartiles, representing different market baskets of goods.
When examining grocery costs over the past decade, a clear trend appears. Prices remained largely stable between 2015 and 2020, surged sharply in 2021, and increased again in 2022. However, after adjusting for inflation, prices have largely leveled off since 2023.
In ten years, the lowest quartile saw grocery prices rise by 55.8% before inflation adjustments.
Summary
The analysis shows grocery prices have surged significantly since 2020 but stabilized in real terms after 2023, highlighting adaptability yet enduring inflationary pressure on basic needs.