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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.
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."
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“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
Food prices away from home were up 3.9% broadly year over year in April, while food prices at home were up 2% annually, according to the Consumer Price Index.
All told, food prices have shot 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.
In late 2024, a survey by Swiftly found that 70% of American consumers are having difficulty affording groceries.
The broader immigration crackdown could also negatively affect food costs, as it might lead to labor shortages that impact supply. With the potential return of tariffs to drive prices up even more, things could get worse before they get better.
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.
Planning your week based on what’s on sale at your local supermarket is a good idea. Focus on meals that freeze easily — like casseroles and stews. This way, you can whip up a lot of food and have leftovers.
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.
You can also save while you shop for groceries — and all your other purchases — with Acorns.
Acorns is an automated investing and saving platform that simplifies the process of setting aside your spare change.
When you sign up and link your bank account, Acorns automatically rounds up the price of your purchase to the nearest dollar and deposits the difference into a smart investment portfolio for you.
As the pennies add up, you get to grow your wealth without even thinking about it. Plus if you sign up today, you get a $20 bonus investment.
Using the right credit card when you shop for groceries can also make a big difference. Some offer bonus cash back on supermarket purchases. That won’t lower your costs, but it could put cash back in your pocket.
Another way to keep more money on hand is to ensure the cash in your bank account is earning you money. One option is opening a high-yield savings account. These plans can offer up to 10 times the average national APY of 0.41%.
With SoFi you can open a fully digital checking and savings account while earning up to 3.80% APY. The best part? SoFi charges no account, monthly or overdraft fees.
You can get up to $300 when you sign up with SoFi and set up a direct deposit.
Read more: 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
Find other ways to save
While you may not be able to prevent your grocery budget from creeping up each month, there are other ways to find savings in your budget that can help offset the cost of food.
For example, searching for a better deal on home insurance can save you as much as $482 per year.
Cutting out the time-consuming task of gathering quotes for multiple insurers, OfficialHomeInsurance.com makes it easier to find the lowest rates on your home insurance for free.
In under 2 minutes, OfficialHomeInsurance.com can show you offers tailored to your needs from a list of over 200 reputable insurers.
Simply fill in a bit of information and quickly find the coverage you need for the lowest possible cost.
Another pain point for many is car insurance. A report by Market Watch found that 82% of Americans struggle to keep the monthly cost of car ownership below 10% of their monthly income.
But with OfficialCarInsurance.com, you could cut your insurance costs down to size, and keep them within the scope of your budget.
Getting started with a quote is easy: When you enter your age, your state, the type of vehicle you drive and your driving record OfficialCarInsurance.com will sort through the leading insurance companies in your area, including top providers like Progressive, Allstate and GEICO.
The process is 100% free and won’t affect your credit score — guaranteed.
Finally, one of the best ways to save money is to plan ahead. For those with a fur family, you could save thousands of dollars down the line on costly emergency vet bills by searching for a new plan with BestMoney.
Their easy-to-use platform allows you to instantly compare coverage benefits, including deductibles, geographical availability and reviews — all in one place.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
