Food Prices Continue to Rise, Squeezing Household Budgets

Food prices, including grocery and restaurant meals, are still rising despite cooling overall inflation. Food costs rose 0.4% in January.

25% higher grocery prices compared to January 2020 are especially painful as inflation has only risen 19% in that period.

Beef, poultry, juices, fruits & vegetables, and snacks cause 30% of grocery inflation. Beef is up 7.7% in January.

Fast-food prices jumped 5.8% in January from a year ago as chains like McDonald's raise prices, impacting lower-income consumers.

Grocery price inflation should slow by year-end but restaurant meals expected to end the year up 4.7%.