Food inflation is still impacting consumers at the grocery store. USDA reports that Americans spend less of their annual income on food than people in many other countries, even as it is the third largest spending category for most households after housing and transportation. Data shows that 12.8% of household spending went toward food in 2022, a lower number than in prior decades.

One year later, food prices jumped 5.8% in 2023, including grocery items and away-from-home foods such as at restaurants. Food spending in 2022 was 9.8% higher than in 2021. For 2024, USDA expects food prices to rise moderately by 1.3%, though volatility in markets such as eggs and meat could change that.

Read more on food prices here.