CHAMPAIGN: The surge in grocery prices nationwide, exceeding a 25% increase since 2020, as reported by the U.S. Department of Agriculture, has compelled consumers to reevaluate their spending habits. With food expenses now ranking as the third highest consumer expenditure, households are feeling the strain of persistent inflation.
According to USDA data, the cost of food at home experienced successive annual increases, with a 3.5% uptick in 2020, followed by 3.9% in 2021, a substantial 11.4% surge in 2022, and a further 5% rise last year.
“While the USDA anticipates a return to a more typical annual increase of approximately 1.6% for 2024, consumers continue to grapple with the compounded effects of price hikes over recent years, leaving grocery bills notably elevated,” remarked Jamie Mahlandt, a financial educator affiliated with the University of Illinois Extension.
Mahlandt highlighted specific food categories, such as fats and oils, processed fruits and vegetables, and cereals and bakery products, which have experienced above-average price increases. Notably, cereals and bakery products are anticipated to stabilize in 2024.
Amidst this backdrop, individuals like Laurie Gorham, a retiree, find themselves extending their working years to offset rising grocery expenses. “This is it. We can’t do anything else. We don’t travel, and we don’t go out to eat. It’s been really hard,” expressed Gorham.
Echoing similar sentiments, Laura Parrett, another shopper, shared her strategies for coping with escalating food prices. “I’m retired now, so I have more time and can scout different stores for better prices. We also eat at home more. Before Covid, we dined out a lot, but now we’ve embraced cooking at home,” Parrett disclosed.
Mahlandt offered practical tips for consumers grappling with budgetary constraints. She advocated utilizing resources like the USDA’s cost of food at home calculator to establish realistic grocery budgets. Additionally, Mahlandt developed a grocery planning booklet aimed at assisting individuals in meal planning and monitoring their grocery expenditure.
“Consistency in adhering to a spending plan can pose challenges. Our booklet guides individuals through setting basic spending goals and planning meals accordingly,” Mahlandt elucidated.
Furthermore, Mahlandt encouraged consumers to adopt cost-saving measures such as price comparisons, coupon usage, and adhering to shopping lists. Addressing food waste emerged as another avenue for curbing grocery costs, with Mahlandt noting, “The average family of four discards approximately $1,500 worth of unused food annually. Simple meal planning can foster more judicious consumption, minimizing waste and maximizing savings.”
