Americans are currently experiencing the highest grocery prices in modern history. New data reveals that the average monthly cost for a family of four to purchase groceries has surged to $1,030. This represents a substantial increase of $280 compared to 2017, when the typical family's monthly grocery bill was approximately $750.
The most significant escalation in food costs occurred during the inflation wave of 2021–2022, a period that saw food prices jump by over $150 in just two years. However, instead of abating, these prices have continued their upward trend, pushing the annual grocery expenditure for an average household beyond $12,360. For context, a comparable family spent around $9,000 annually on groceries in 2017.
US grocery prices have never been more expensive:
The average cost of groceries for a family of 4 is now up to a record $1,030/month.
This marks a +$280 increase since January 2017, when the average family spent $750 a month.
In 2021-2022 alone, grocery costs surged by +$150.… pic.twitter.com/A0yPFuW6gL
— The Kobeissi Letter (@KobeissiLetter) November 15, 2025
The latest data visualizations illustrate a consistent upward trend in food prices. Between 2017 and 2020, food inflation progressed at a steady, albeit modest, pace. Following pandemic-related disruptions and global supply chain shocks, the rate of increase steepened considerably. This acceleration was fueled by a combination of factors, including elevated transportation costs, supply-chain bottlenecks, spikes in fertilizer prices, and ongoing labor shortages affecting various sectors of the food industry.
Currently, even as overall inflation shows signs of moderating, grocery prices are proving to be resiliently high. Essential items such as meat, dairy products, fresh produce, and bread have all seen price increases that outpace broader Consumer Price Index (CPI) components. This situation is diminishing consumers' discretionary income, compelling many households to reduce savings or cut back on spending in other areas.
The Emerging Affordability Crisis
Economists are now issuing warnings that the United States is confronting a structural affordability crisis, rather than a temporary inflationary episode. Unlike goods whose prices can fluctuate with demand, food prices historically exhibit a tendency to remain elevated once they have risen. This suggests that the current high grocery costs may become the new standard for American households.
With wage growth lagging behind the pace of price increases, millions of individuals and families are feeling the financial pressure. Unless there are significant improvements in supply-side conditions or substantial productivity gains that lead to cost reductions, food affordability is likely to remain a persistent and significant financial challenge for U.S. families in the foreseeable future.

