Are groceries more expensive than last year?
Grocery store food prices increased 2.1% from January 2025 to January 2026 – the product with the biggest jump, ground beef, went up more than 21%.
Grocery store food prices increased 2.1% from January 2025 to January 2026, according to the Bureau of Labor Statistics (BLS). That’s less than the increases for utility gas (9.8%), electricity (6.3%), medical services (3.9%), and shelter (3.0%), but more than new vehicles (0.4%), transportation services (1.3%), apparel (1.7%), and gasoline (-7.5%).
A 2.1% increase is 0.1 percentage points above the 2% of the Federal Reserve’s inflation target, which aims to foster stable economic development.
Grocery store food prices have increased 2.1% over the last year.
12-month percentage change, CPI, food at home, Jan 2006–Jan 2026
How have grocery prices changed over time?
Grocery prices have been rising for a while: Food prices increased 11% from 2021 to 2022, the biggest annual increase in 40 years.
The biggest year-over-year increase in 20-years was in August 2022, when prices were 13.5% higher than the year prior. The biggest decrease was in November 2009, when grocery prices were 2.9% lower than in November 2008.
Price changes vary significantly per item, though, so you may feel them more or less acutely depending on the meals you’re putting on your table.
Which groceries cost more than a year ago?
Out of nine grocery staples defined by the BLS, the cost of a pound of ground beef rose the most between 2025 and 2026, from $5.55 to $6.75, a 21.8% increase.
Bananas and cheese also went up more than the 2.1% average; banana prices rose 5.2%, and cheese 5.0%. Whole milk also went up, but only by 1.9%.
Beef prices increased 21.8% over 12 months.
Average price of popular consumer foods, January 2025 to January 2026
Which groceries cost less than a year ago?
Eggs, tomatoes, potatoes, bread and chicken were all cheaper as of January 2026 than a year prior. Egg prices decreased the most (-48.0%), followed by tomatoes (-12.6%), potatoes (-10.5%), bread (-4.3%), and chicken (-1.0%).
Data for price changes for wider categories of food (e.g., “meats” rather than specifically beef) illustrates more general trends by food type. Cereals and bakery products rose 3.1%, meats, poultry, fish and eggs increased 2.2%, fruits and vegetables increased 0.8%, and dairy decreased 0.3%, according to the Bureau of Labor Statistics.
What factors can impact grocery prices?
Food costs are influenced by complex factors that can include wider societal trends or very specific situations or conditions in a local area. Situations that have affected food prices in the past include:
- Supply chain challenges, like interruptions created by COVID-19 affected meat processing and the war in Ukraine disrupted wheat, corn, sunflower oil and fertilizer markets
- Inflation, as when the supply of money in the late 1970s and early 1980s influenced all consumer prices, including food and beverages, which increased 10.1% in 1980
- Labor and transportation costs, illustrated in a USDA study showing a connection between food prices and fuel cost and/or driver availability
- Plant or animal disease, such as the avian flu in 2022 and its impact on egg and chicken prices
- Extreme weather events, which damage crops and affect animals
- Tariffs, which differ across goods and import location
- Consumer demand, like the COVID-19 shift toward at-home dining that contributed to elevated grocery prices
The USDA expects grocery store prices to increase 2.5% in 2026. But although the federal government can take indirect action to help manage grocery prices, it does not have a direct say in controlling price increases.
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