Soaring food prices have been hurting consumers for years. But things are coming to a head, especially as retailers and consumers grapple with tariff concerns.
According to Bloomberg, Walmart CEO Doug McMillon recently shared at the Economic Club of Chicago that food prices are still elevated — and that consumers are showing signs of "stress behaviors."
Don’t miss
- I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
- Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
“We worry about that,” McMillon said. “You can see that the money runs out before the month is gone.”
McMillon says that shoppers are being more selective in what they buy and are prioritizing value purchases.
“There are lots of income levels in this country — if you’re at the lower end of that scale, you are feeling more frustration and pain because of higher food prices,” he said. “They’ve persisted for years now, and you’re just tired of it."
But what’s the ripple effect behind these price increases?
Food prices aren’t slowing down
According to the Consumer Price Index, food prices away from home were up 3.8% broadly year over year in March, while food prices at home were up 2.4% annually.
All told, food prices have been up nearly 25% since 2020. A big reason for the spike is the supply chain issues caused by severe weather and global events. It hasn’t helped that several food staples have been in short supply.
For example, in early 2025, a bird flu outbreak caused an egg shortage and drove the price of eggs up to a record high that hasn’t been seen since 1980.
Meanwhile, a decline in U.S. cattle inventory has made beef more expensive. The country’s cattle supply recently fell to its lowest level in 64 years.
And down in the South, a citrus greening disease has reduced Florida’s citrus production by 75% since 2005. Extreme weather from hurricanes has also harmed supply, making citrus products more expensive.
Cocoa prices have also risen due to a global supply shortage since early 2024. This has been primarily caused by weather-related issues and diseases ruining crops in West Africa, where the majority of the world’s cocoa is produced.
The combination of these and other factors has made groceries more expensive overall. In late 2024, a survey by Swiftly found that 70% of American consumers are having difficulty affording groceries.
A broad immigration crackdown could also negatively affect food costs, as it could lead to labor shortages that impact supply. And with the potential for tariffs to drive prices up even more, things could get worse before they get better.
Read more: Car insurance premiums could spike 8% by the end of 2025 — thanks to tariffs on car imports and auto parts from Canada and Mexico. But here’s how 2 minutes can save you hundreds of dollars right now
How to save money on groceries
Unfortunately, consumers may be in for another year of soaring grocery prices. But there are steps you can take to reduce the burden.
First, consider buying staple items in bulk. You don’t necessarily need a warehouse club membership to take advantage of bulk discounts. Many supermarkets and big-box stores carry select items in bulk. But be careful with bulk perishables, because wasted food can become wasted money.
It’s also a good idea to shop at discount grocers in your area — think dollar stores or supermarkets like Aldi that carry lesser-known brands. If there’s no discount grocery store where you live, load up on the store brand. But always check prices, because a sale on a national brand could make it the most cost-effective option.
Planning your meals based on what’s on sale at your local supermarket is also a good idea. Focus on meals that freeze easily — like casseroles and stews. This way, you can whip up a lot of food and save some for later.
Also, make sure you’re signed up for your supermarket’s loyalty program. You may qualify for extra discounts, promotions or digital coupons that save you even more.
Using the right credit card when you shop for groceries can make a big difference, too. Some offer bonus cash back on supermarket purchases. That won’t lower your costs, but it could at least put more cash back in your pocket.
Finally, seek out alternative sources of food. Farmers’ markets can sometimes result in savings, but not always. A smarter bet may be to go directly to local farms, if possible, to see if you can score produce at a discount. Joining a community garden or community supported agriculture program could also help you save on fresh items when needed.
What to read next
- Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
- Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
- There’s a 60% chance of a recession hitting the American economy this year — protect your retirement savings with these essential money moves ASAP (most of which you can complete in just minutes)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
