Frustrated by Rising Grocery Costs? Here’s How To Save | Global News Avenue

Have you looked at your grocery receipt recently and groaned when you saw the total? If so, you’re not alone: ​​Americans are still feeling the effects of rising grocery prices.

Household food spending increased by 8.4% between 2021 and 2022. Then from 2022 to 2023, that spending increases by another 6.1%. This means that the average American spending on groceries will increase from $438.25 per month to $504 per month from 2021 to 2023, an increase that is a significant blow to many budgets.

But why are grocery prices rising? What steps can you take to minimize the financial impact? Here’s why your grocery bill looks the way it does, and how to budget for it so you don’t grit your teeth the next time you hit the store for your favorite cereal.

Breakdown numbers

As of October 2024, grocery prices are up 1.1%. While this is down significantly from the peak of 13.5% in August 2022, grocery prices are still rising.

To get a more complete picture of Americans’ grocery spending, average annual spending across all consumer units was $77,280 in 2023, up 5.9% from 2022, according to the U.S. Bureau of Labor Statistics. The largest expenditure is on housing at 32.9%, followed by transportation (17%) and food (including groceries and eating out) (12.9%).

Food is the third most expensive item in household budgets nationwide. So it’s important to understand why grocery prices remain high.

Why does this happen?

Several factors contributed to the rise, or inflationin grocery prices, many of which are related to COVID-19 pandemic. supply chain issues, the war in Ukraine (which caused wheat prices to skyrocket) and an increase in the number of people eating at home instead of going out increased demand for groceries, ultimately causing prices to rise.

You may have noticed that over the past few years, grocery prices have increased so much that they have periodically exceeded the overall rate of inflation, with the cost of staples rising significantly. For example, the cost of milk rose from $2.91 per gallon to $4.04 per gallon from October 2018 to October 2024, according to the U.S. Bureau of Labor Statistics. egg costAffected by the bird flu epidemic, the price per dozen rose from US$1.66 to US$3.37.

How much should you budget for groceries?

Thankfully, while prices are cooling, groceries are still expensive and a major expense for Americans. So, how much should you budget for groceries, and how can you afford those more expensive eggs?

The United States Department of Agriculture (USDA) has established afrugal food plan” serves as a guide to grocery shopping. The plans provide estimates of healthy home-cooked meals and are divided into low-cost, moderate-cost and free-cost outlines.

For example, a family of four (defined as two adults ages 20-50 and two children ages 6-8 and 9-1) average monthly The cost should be budgeted at $986.70 per month. This is up from the October 2022 recommendation of $967.70.

this 50/30/20 A budget plan can also be a helpful guide. The plan recommends spending no more than 50% of your budget on items you need to survive, such as groceries, utilities and housing expenses. The remaining 20% ​​should be used for savings and the remaining 30% for things you may want but don’t necessarily need, such as vacations or entertainment.

bottom line

Rising grocery prices continue to challenge household budgets, driven by factors including the COVID-19 pandemic and supply chain issues. However, by using budgeting tools and adjusting as needed, you won’t feel the sting the next time you’re strolling down the grocery store aisle.