Why groceries still feel expensive even though Americans are spending less of their income on food

Americans are still noticing high grocery totals in 2025, even as several long-term measures show food now takes up less of the average household budget than it once did. The latest federal data points to a split reality: incomes have risen over time, but grocery prices jumped fast in recent years and many basics are still well above their pre-2020 levels. That is why the checkout line can feel expensive even when food spending, as a share of income, looks lower on paper.

What the latest data shows

The U.S. Department of Agriculture said in its most recent food spending data that Americans have spent a much smaller share of disposable personal income on food over the long run than they did in the 1960s. USDA figures have generally put that share near historic lows in recent years, even after the inflation surge that hit from 2021 through 2023.

At the same time, the Bureau of Labor Statistics reported that grocery prices remain elevated compared with 2019. The Consumer Price Index for food at home rose sharply during the inflation spike, and while the pace of increases cooled in 2024 and 2025, many staples never returned to their old price points, according to monthly CPI releases.

That gap matters because shoppers buy groceries in dollars, not percentages. A household earning more in 2025 may devote a smaller share of income to food than a similar household did in 1980, but it can still see a noticeably higher bill for eggs, meat, or cereal on a weekly trip, based on BLS price data.

Why it still feels expensive at the store

A big reason is recency. The fastest food-at-home inflation in decades hit over a short stretch, and BLS data showed grocery prices rose far faster in 2022 than most shoppers were used to seeing in a single year.

Another reason is that people notice frequent purchases more than annual budget shares. USDA and BLS data both show food is a recurring expense, so consumers see those prices every week, unlike costs such as insurance or payroll withholding that may be less visible day to day.

There is also a difference between averages and individual experience. The Bureau of Economic Analysis tracks national disposable income, but that national figure does not mean every household got the same wage gains, especially renters and lower-income families in high-cost states such as California and New York.

What it means for households now

For shoppers in 2025, the clearest takeaway is that relief has been uneven. Inflation has cooled from its 2022 peak, according to the Bureau of Labor Statistics, but slower inflation only means prices are rising more slowly, not that groceries are broadly getting cheaper.

That helps explain why discount chains, private-label brands, and smaller basket sizes have stayed common across many U.S. markets. Major grocers including Walmart and Kroger have discussed price-sensitive consumer behavior in earnings calls during 2024 and 2025, saying customers continue to look for promotions and lower-cost substitutes.

What is not yet clear is how quickly grocery pricing will feel normal again to households that reset their budgets after 2021. For now, USDA and BLS data show a consistent picture: food may take a smaller share of income over time, but a higher shelf price is still what shoppers see first.