Why Groceries Are So Expensive Right Now

From supermarket runs and restaurant meals to takeout orders and Girl Scout Cookies, the cost of food continues to go up. In fact, from December 2023 to December 2024, food prices increased 2.5%.¹

It’s enough to make you throw a mini tantrum in aisle 7—right next to the 5-year-old begging for a candy bar.

So, why are food prices so high? We’re breaking down the reasons why groceries are so expensive right now. Plus, we’ve got some tips to help you save money when grocery shopping!

Why Are Groceries So Expensive?

Grocery prices have gone up due to several factors, including the bird flu, higher production costs, extreme weather, labor shortages and global supply chain issues.

All these things and more affect how much you spend on groceries each month. But let’s break down some of the main causes of “foodflation” happening right now.

The Bird Flu

While egg prices may have cooled off a bit in 2023, the ongoing avian influenza isn’t done impacting your breakfast routine. More than 121 million birds have been affected since February 2022 (including a ton of egg-laying chickens), and that number continues to grow.² This has caused poultry farmers in almost every state to increase their egg prices. In fact, the price of eggs has risen 36.8% from December 2023 to December 2024.³

But you might be able to find cheaper eggs from local farms whose flocks haven’t been infected. Plus, many people have started raising their own chickens as a result of rising costs, so you might have a neighbor willing to sell (or give away) some of their egg supply.

Higher Production Costs

Believe it or not, that package of beef or bag of apples doesn’t just appear at the grocery store like magic (if only it were that simple). It all starts on a farm.

Right now, farmers have to pay more to get the seeds, fertilizers, animal feed and equipment they need to grow and process all the delicious foods we eat. And extra cost for farmers means extra cost for you, the consumer.

Plus, wage increases for those working in food production (including processing plants, warehouses and grocery stores) also impact the total on your grocery receipt—especially if you buy a lot of heavily processed foods (think Goldfish and Frosted Flakes).

Extreme Weather

Food prices depend a lot on the climate. Droughts, fires, floods and other natural factors can ruin crops and make food prices rise for everyone—even years down the road.

Droughts and intense heat in many parts of the world (including right here in the U.S.) have made it harder to grow fruits and vegetables, which means less availability and higher prices in the produce aisle.

The lack of rainfall also affects hay production, so ranchers have less to feed their cattle and are forced to reduce their herds. And since cattle numbers are going down, the price you pay for beef goes up.

In addition, recent hurricanes (like Hurricane Helene and Hurricane Milton) have damaged the majority of Florida’s citrus crops. This leads to a more expensive price tag on that gallon of OJ, as well as other juices.

Labor Shortages

There’s currently a labor shortage in the food industry—especially when it comes to agriculture and food manufacturing. The number of farmworkers in America has been steadily declining for decades. And as more and more farmers reach retirement age, there aren’t enough people entering the field to maintain the same output.

Try our free Meal Planner to save money on groceries!

But even though there are fewer people helping to produce our country’s food supply, America’s appetite isn’t getting any smaller. And when people buy food faster than it can be produced—you guessed it—your grocery bill gets bigger.

Global Supply Chain Issues

The U.S. imports about 15% of all its food.⁴ And the entire process has gotten a lot more expensive lately. Wars and port congestion (aka shipping barge traffic jams) have disrupted, or even completely stopped, food production and transportation in certain parts of the world.

International shipping costs, as well as tariffs and trade wars, also directly increase the cost of certain foods we get from other countries. And unfortunately, that extra cost gets passed on to you.

All of these factors make imported food like bananas, cocoa and coffee pricier. (That may explain why your daily Starbucks habit is adding up faster than usual.)

Food Prices That Have Increased the Most

According to the Consumer Price Index (which keeps a record of the average food prices across America for each month), these are the foods that increased in price the most from December 2023 to December 2024:⁵

• Eggs: 36.8%
• Frozen, noncarbonated juices and drinks: 12.5%
• Condiments (not including relishes and sauces): 12.4%
• Dried beans, peas and lentils: 5.5%
• Beef and veal: 4.9%
• Lettuce: 4.4%
• Fresh vegetables (not including potatoes, lettuce and tomatoes): 4%
• Coffee: 3.8%
• Candy and chewing gum: 3.7%

And these changes don’t just affect grocery prices. You’ve probably noticed some extra dollars tacked onto the bill at your favorite restaurant or fast-food joint. The cost of food away from home (aka eating out) increased 3.6% from December 2023 to December 2024.⁶ So much for those dollar-menu chicken nuggets!

Will Food Prices Go Down in 2025?

Food prices are expected to keep rising in 2025 (womp womp)—just not as much as previous years (yay?). The U.S. Department of Agriculture predicts that all food prices will increase around 2.2% in 2025.⁷ So, not terrible news but also not great news.

Hopefully, we’ll see food production costs go down, labor shortage issues get resolved, and the bird flu slowly go away. But it can take years for these factors to change the number on your grocery receipt. And as always, farmers can’t control the weather.

That said, we could be riding out the wave of rising food prices for quite a while.

7 Tips to Save on Groceries (Despite Food Prices Rising)

Okay, enough with all the depressing stuff. Yes, food prices are going up. But you’ve still got to eat, right?

Here are some things you can do to fight inflation and save money on groceries this month.

1. Do your research.

Meal planning is a great way to make sure you’re keeping costs low and only buying what you need. And now more than ever, it’s a good idea to do a little research before you make your shopping list.

See what's in season and what’s on sale at your local supermarket. Are diced tomatoes buy three, get three free? Looks like you’re making salsa! You can save a ton of money just by planning your meals around weekly specials.

2. Use what you have.

Nobody likes wasting food—especially when throwing away one avocado is like throwing $3 in the trash. So before you head out to the store, take a long, hard look inside your fridge and pantry. See if you can use what you already have to make a meal, even if you don’t have all the ingredients.

Got some rice? Add some beans to your list. A little bit of milk in the fridge? Use it to make pancakes. Leftover chicken tenders? Grab some tortillas and make tacos. Taking inventory each week will help you save money and keep you from throwing out perfectly good food. It’s a win-win!

3. Choose generic brands.

Even though prices are going up, you can still shave a couple dollars off the total cost by choosing generic brands. You might not be willing to give up your name-brand cereal or cookies right now, but most staples (like milk, canned vegetables, spices and flour) are practically the same.

In fact, Consumer Reports says most store brands are similar enough to the name brands in overall taste and quality—and they’re usually 20% to 25% lower in price.⁸ Just be sure to compare prices while you’re in the aisle so you know you’re actually saving money.

4. Switch up where you shop.

Higher prices are everywhere, but you can still save money by shopping at cheaper grocery stores. Places like Aldi, Trader Joe’s and H-E-B keep costs low for their customers by carrying store brands, focusing on local foods, or making you bag your own groceries.

And don’t forget about your local farmers market. But wait, aren’t farmers markets more expensive? Not always! With food transportation costs as high as they are right now, you might actually get a better deal on eggs and local produce than you would at the grocery store. Plus, you’re helping support local farmers.

5. Cut back on the meat.

Listen, we’re not telling you to suddenly become a vegetarian. But meat is expensive! You may not be ready to give up your morning bacon ritual just yet, but try replacing a couple of meals throughout the week with a nice salad, pasta or veggie dish. There are lots of great meatless recipes out there, and you might just find a new favorite.

6. Freeze your meals.

If you’re worried about food prices continuing to rise, you can stock up on ingredients now and freeze some meals for later. All you need is a day to cook up a couple casseroles and some room in your freezer. Just be sure to make things you won’t mind eating on repeat for a while.

7. Adjust your food budget.

Having a budget is the best way to combat rising prices. When you’ve made a plan for your money before the month begins, you can shop those grocery store aisles with confidence. Plus, the great thing about a budget is that you can adjust it as things change!

Because let’s be honest, even if you put all these food-saving tips to use, you might still end up spending more than you usually would on food. But when you budget with EveryDollar, it’s super easy to track all your food purchases, move some numbers around, and see where you can cut back in other areas. Your budget is there to work for you, not against you.

And listen, food prices may be going up, but you will get through this. All it takes is intentional planning, some focus, a little bit of creativity, and of course, your trusty budget.