Why food stays expensive
We need food and can’t just avoid buying it as though it were a luxury item. Since 2021, food costs have been increasing. Several pressures hit at once: pandemic-related supply chain problems, labor shortages, rising freight costs, and access to fertilizer tied to Russia’s invasion of Ukraine all pushed prices up. Now we have another Middle Eastern war affecting supply problems, more labor shortages, transportation costs, and higher prices like fertilizer.
Inflation also matters, but when price increases slow, the current higher prices of food do not go back to old levels. We can’t catch a break.
What shoppers are paying now
Food prices were up 3.2% year over year as of April 2026, according to the Bureau of Labor Statistics. It’s not going to get better anytime soon; the USDA forecasts prices will rise another 2.9% on top of already elevated levels.
Some basic items have risen a lot more than others. Beef and coffee have increased significantly, and restaurant meals also kept getting more expensive.
Why it hits people hard
Food is a basic expense, so even small increases can strain a household budget. Lower-income families are hit harder because they spend a larger share of their income on food and shelter. Engel’s Law (1857) established that lower-income households spend a higher proportion of their budget on food — still true today.
The popular 50/30/20 budget rule typically recommends food stay within 10–15% of take-home pay.
Why Lower-Income Households Spend a Higher Share on Food
1. Food Is a Non-Negotiable Need
Everyone needs a minimum number of calories to survive, regardless of income. Naturally, a food budget represents a larger share for someone earning $25K than someone earning $150K.
2. Fixed Costs vs. Discretionary Spending
Higher-income households have more discretionary categories to spread spending across; this mathematically dilutes food’s share of the total budget, even if they’re spending more dollars on food in real terms.
3. Limited Access to Cost-Saving Options
Lower-income households often face barriers that actually make food more expensive per dollar:
- Food deserts — limited access to affordable grocery stores, relying on convenience stores with higher prices.
- No bulk-buying capacity — buying in bulk saves money but requires upfront cash and storage space. Plus, for seniors, singles, and small families, too often bulk buying leads to waste through unused food.
- No car — no access to bigger grocery stores.
4. Time Poverty
Cooking from scratch is cheaper but time-intensive. Lower-income households, especially those working multiple jobs, may rely more on prepared or processed foods, which cost more per meal. A lot of seniors don’t have the energy or drive to cook daily, and cooking for one can be challenging.
5. No Economies of Scale at Home
- Larger, wealthier households can spread fixed cooking costs (a roast chicken, a pot of soup) across more people. Smaller or single-person lower-income households pay more per capita.
U.S. Average Food Budget as a Percentage of Total Spending
The national average is approximately 12–13% of total household expenditures, according to the Bureau of Labor Statistics Consumer Expenditure Survey.
Breaking it down:
- Groceries (food at home): ~8%
- Dining out (food away from home): ~5%
By Income Level
Household Income Food % of Budget
Under $30K/year ~30–36%
$30K–$70K ~14–18%
$70K–$100K ~12–13%
Over $100K ~8–10%
The less you earn — and for seniors, singles, and small families especially — the harder rising food prices hit.
What Can We Do?
We can’t live without food. And if anyone is like me, food brings great joy in my life. I’m one who lives to eat, not eats to live (and my waistline is proof).
Overall, having good, healthy options for food improves the quality of life. It adds to health and happiness. No one should have to forgo simple foods they enjoy because the cost is too high, the packages are too large, or shopping is too difficult.
We need to get creative. I see people in the store who are obviously seniors or cooking for themselves with only a couple of items in their carts. Everyone deserves to have good food, food they enjoy. So I created GroceryShare to help by letting us team up with people in our communities to split large packages, buy in bulk, and save money. It also helps the other huge problem facing far too many people – loneliness and social isolation. Sure, we might not make close friends when we partner with others to split groceries, but it does increase some social connection, and maybe we can make more friends.
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