<meta name="description" content="Explore the states most affected by rising grocery costs in 2025. Discover how food prices as a percentage of income impact different regions.”>
In a recent study, food costs were compared to the household income of 2025 in order to determine the burden that grocery shopping will have on Americans.
How rising food prices affect American families
Despite promises to ease financial burdens for families, current administration is facing challenges due to the continued rise in food prices and essential goods after the start of President’s second tenure.
Bureau of Labor Statistics data shows that as of January 20, 2025 food prices increased by 2,5% in comparison to last year. Price increases have been notable for specific items such as eggs, coffee and flour.
The President has already issued an executive order to address the crisis of cost-of living, focusing specifically on the difficulties created by rising grocery prices and inflation.
Food Inflation: Understanding its State-by State Effect
Data sources <a href="https://wallethub.com/edu/states-where-people-spend-the-most-least-on-groceries/144275″ target=”_blank” rel=”noopener nofollow”>WalletHub’s analysis The study looks at the cost of 26 grocery items that are common to each state. The study compares these costs to median household income.
This study highlights a critical disparity. States with lower household median incomes, are more affected by the rising cost of groceries even when national price increases do not exceed those in these states. They are also more susceptible to food inflation.
States experiencing the most significant increase in grocery costs as a percentage of income:
- Mississippi (2.64%)
- West Virginia (2.57%)
- Arkansas (2.49%)
- Kentucky (2.41%)
- Louisiana (2.39%)
- New Mexico (2.36%)
- Alabama (2.34%)
- South Carolina (2.27%)
- Tennessee (2,23%)
- Oklahoma (2.21%)
States with the lowest increase in grocery costs as a percentage of income:
- New Jersey (1,50%)
- Maryland (1.54%)
- Massachusetts (1,54%)
- New Hampshire (1.60%)
- Connecticut (1,62%)
- Utah (1.63%)
- Minnesota (1.66%)
- Virginia (1.66%)
- Colorado (1.67%)
- Hawaii (1.68%)
According to U.S. Census Data, Mississippi’s median household income, at $54,203 is lower than the national average.
New Jersey, on the other hand, has a median household income of $95,781. according to U.S. Census DataResidents of this city enjoy greater financial freedom despite higher food prices. WalletHub’s research relied on data from the Council for Community and Economic Research and U.S. Census Bureau.
Expert and political reactions to rising grocery prices
Illinois Governor J.B. Pritzker Twitter users were warned of the possible impact of Trump’s Tax on Working Families on the prices of consumer goods. “If Trump’s Tax on Working Families continue, beer and grocery prices will rise, as will the costs of cars, electronic devices, and appliances.”
The President of the United States, Donald TrumpThe. It is not too late to start. In an interview with a magazine, the author acknowledged that it is difficult to lower prices once they’ve risen. [prices] up. It’s time to take them down. After they are in place, it is hard to get them out. Yes, you’re right. However, I do believe that they’ll succeed. They will be brought down by energy, I believe. “I think that a more efficient supply chain will bring them down.”
Kevin Hassett is the White House economist, speaking to CNN, highlighted strategies to combat inflation: “We’re focusing on getting spending under control and having supply-side tax cuts and regulatory policies and drilling and so on, so that there’s a lot of supply-reduced demand…That’s how you get sustainable prices down at the more macroeconomic level.”
Senate Democratic leader Chuck Schumer On Twitter, critics criticized Trump’s performance in the economy and coined the term “Trumpflation”. “Welcome into the age of Trumpflation.” The price of groceries has increased. The cost of chicken, pork, and steak has increased. Eggs prices are up 15% from last month… Donald Trump is breaking his promise to lower costs starting on day one.”
Possible policy impacts on grocery costs
Trump will likely continue to implement tariffs. He recently announced a new program of reciprocal tariffs aimed at the countries who currently charge tariffs on U.S. products. These tariffs have yet to produce any noticeable effects.
Tariffs are used as a way to protect the domestic industry. Although intended to be a benefit for local producers these costs can often be passed on by the importing companies, leading to higher prices of everyday items.