Are Your Monthly Grocery Costs Above Average? Here’s What Americans Typically Pay

A Note From Patricia:

Hello and welcome to Forbes Advisor’s Weekly Brief, where each week we dive into the realities of consumer finance and empower you with the knowledge to help make your financial journey easier.?

Despite inflation trending lower, the cost of everyday essentials is still straining many household budgets. According to the most recent Consumer Price Index (CPI), a popular measure of inflation from the Bureau of Labor Statistics, food prices rose 2.7% from December 2022 to December 2023.?

And despite food prices rising at a slower pace than they were, common household food staples—including bread and canned fruits and veggies—are significantly more costly than they were a year ago.

Although food may be more expensive these days, there are still ways to save. This week, we’ll discuss how much the typical American shells out at the grocery store, and share ways to budget for groceries that are good for your financial and physical health.?

We’d love to hear your thoughts or experiences in the comments section below. Have a wonderful day and hope to hear from you soon.

Sincerely,

Patricia Louis

Editor, Forbes Advisor

QOTD: How much do you spend on groceries? Tell us about it in the comments section below.

Food prices may not be rising as fast as they were a year ago, but they’re still making a considerable difference in monthly grocery budgets. At-home food prices increased by 5% in 2023 alone.

A variety of factors continue to push food prices up, including an avian influenza outbreak, the ongoing war in Ukraine (a major exporter of grain) and high labor costs. These factors compounded other inflationary pressures in the economy, including elevated energy costs, causing at-home food prices to continue trending upward.

As the prices at the grocery store continue to fluctuate, how much should you budget for groceries? According to the USDA, it varies based on your income, the size of your household and who’s in it.?

The USDA reports that a family of four with two children between the ages of 9 and 11 can expect to pay an average of $1,068 to $1,623 a month for groceries, depending on how thrifty or liberal they are with their spending.?

There are strategies to shop without breaking the bank. Here are three tactics to save money at the grocery store:?

1. Find out what’s in season and on sale. Seasonal fruits and vegetables are oftentimes cheaper since they’re more plentiful and aren’t being shipped in from warmer regions. For example, here’s what is in season right now:?

• Kale
• Leeks
• Lemons
• Limes
• Onions
• Oranges
• Parsnips
• Pears

2. Join your grocery store’s rewards programs. Many grocery stores have free-to-join rewards programs that can offer members savings such as additional discounts or buy-one-get-one offers. The next time you shop, ask your cashier or store manager for more information on how to enroll.

3. Use cash-back or rewards credit cards. Many credit cards offer bonus rewards for grocery spending such as points or cash back. Consider choosing a card that offers benefits you can use toward future grocery spending—but be sure to pay your balance in full each month to avoid any interest costs canceling out your savings.?

To learn more about ways to save money at the grocery store as well as see how your spending compares to the average American, read more here.

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Here’s what else is going on in the news this week:

• Promised FAFSA Fix Will Release Another $1.8 Billion In College Financial Aid For Families -The Department of Education will adjust its aid calculations based on the Free Application for Federal Aid, or FAFSA, to account for the sharp rise in inflation. Here’s what you need to know.
• Apple Tightens Security On Stolen iPhones: Face Or Touch ID Needed For Passwords, Payments - In a bid to foil potential thieves, Apple has rolled out a major security update for iPhones that identifies users with biometric scans before granting them access to important data. Here’s what users should know.
• Seven States Join Feds To Sue Debt Relief Firm SRS For Fraud, Alleging $100 Million Swindle - Federal regulators and seven states are suing a New York-based debt relief company, claiming it bilked financially struggling customers out of more than $100 million in illegal and exorbitant fees without actually providing any debt relief.?