In a nutshell
With grocery prices still on the rise, establishing a budget helps you avoid overspending and gain better control over your finances.
- On average, Americans allocate over 11% of their after-tax income to food, according to the U.S. Department of Agriculture.
- To maximize your grocery budget you can plan meals, buy store brands and bulk items and use coupons, discounts and rewards programs.
Inflation and the cost of groceries
If you’ve been grocery shopping lately, you’ve probably noticed prices climbing. Take milk, for example: Back in 2018, a gallon cost around $2.90. That same gallon will set you back about $3.86 today, a more than 30% increase in just six years.
The U.S. Department of Agriculture reports that average annual prices for groceries at home were 5% higher in 2023 compared to the previous year. To put this in perspective, over the last two decades, food prices…
