Grocery Inflation: Rising Costs and How To Save

Takeaways: Grocery Prices Are High, But You Can Still Save

• Grocery prices surged after 2020 and peaked in 2022. While the pace has slowed, prices remain higher overall.
• In 2026, grocery prices were projected to increase another 2.5%.
• Inflation has hit some foods far harder than others, including eggs, meat, grains, sugar, coffee and orange juice.
• Higher costs stem from pandemic disruptions, avian flu, energy prices, extreme weather and global supply issues.
• You can cut grocery costs by swapping proteins, buying store brands, choosing ingredients over prepared foods, and using canned or frozen produce.
• Tracking unit prices and shopping seasonally can help you manage your grocery budget.

We dove into recently released data to discover where prices increased the most in the past several years — and what small changes might add up to big savings to help keep you out of debt.

Food Inflation in the Past 5 Years

Food prices increased overall at an average of 2.9% from January 2025 to January 2026. The 20-year historical level of retail food price inflation is 2.7% per year, according to the U.S. Department of Agriculture.

However, from 2021 to 2023, prices rose much faster, and many shoppers are still feeling those increases.

Source: USDA Economic Research Service, Food Price Environment: Interactive Visualization.

In 2022, food prices increased by 11.4%, faster than in any year since 1979. Now, prices are still increasing, just not as quickly.

Seattle-Tacoma Food Inflation

Prices are even higher in some areas, such as the Seattle-Tacoma-Bellevue region. Food prices rose 4.8% between 2025 to 2026. Prices for food eaten at home grew slower, at 2.2%.

But food eaten in restaurants or otherwise away from home grew dramatically, at 7.6%. This is nearly double the national inflation rate of 4%.

Why Is Grocery Inflation So High?

The U.S. and world economy influences inflation along with seasonal fluctuations. For example, the price of strawberries is far higher in winter, and egg pricing has gone up and down due to different factors.

Contributing factors to food inflation in recent history have included:

• COVID-19 pandemic.
• Highly Pathogenic Avian Influenza (HPAI) outbreak affecting egg and poultry prices in 2022.
• Economy-wide pressures on energy prices.

Global factors are at play, too. War can increase oil prices, which can potentially increase the cost of shipping produce and food.

Breaking down the data and comparing the numbers to your own grocery receipts might help you understand what's driving up your grocery bills — and maybe even help you outsmart inflation.

Grocery Items Hit Hardest by Inflation

According to the U.S. Bureau of Labor Statistics, the food categories experiencing the most inflation in 2025 between were nonalcoholic beverages with more than 5% increase, while fruits and vegetables, and cereals and bakery products all saw increases of almost 3%.

In 2026, many grocery categories will have higher prices than the 20-year historical average rate of growth, according to the USDA. These include:

• Beef and veal
• Other meats
• Fish and seafood
• Processed fruits and vegetables
• Sugar and sweets
• Cereal and bakery products
• Nonalcoholic beverages

Prices for seven other food-at-home categories are predicted to grow slower than their 20-year historical average rate of growth.

How To Save on Protein

1. Buy Lower-Priced Meats

Despite being more affected by inflation, some meats, like chicken, continue to cost less overall. Inflation increased the price of whole chicken dramatically. But even in the U.S. West, buying a whole bird is only $2.05 per pound versus uncooked beef steak at $12.73 per pound. Steaks are up a little over 17% in February 2026 compared to January 2026.

Most types of ham are less than $5.61 per pound, on average. Most types of beef are more than $8 per pound with the exception of ground beef, which is around $6.70 per pound as of February 2026 BLS data.

2. Diversify Your Protein Sources

Diversifying your protein sources is good for your health and your wallet. To save money, swap out one or two meat-based meals per week for those relying on low-cost protein foods such as beans, peas and lentils. On average, a pound of dried beans is just $1.71, and a pound makes 12 servings. Beans increased only 19% since 2020.

3. Buy Protein in Bulk

You can lower meat costs by buying value-sized packs, typically priced lower per pound, and freezing what you don't use right away. Buying nuts and beans in bulk may also make sense per pound. Compare pricing to snack packs or smaller bags — and stash in a cool, dry place.

4. Choose Your Cuts

Depending on the protein source, you could save by opting for a different cut. If your recipe calls for chicken, try cooking the whole bird and cutting it up instead of buying specific parts.

How To Save on Fruits and Vegetables

1. Canned and Frozen Produce Can Still Reduce Costs

Although frozen and canned fruits and vegetables have seen significant inflation in past years, many still tend to cost less and are just as nutritious as fresh varieties. Frozen and canned fruits and veggies might also reduce the amount of food you throw away when it gets mushy or moldy.

2. Buy Local and In-Season to Freeze for Later

The cost of strawberries skyrockets every winter, then falls months later. In January 2026, a pint of strawberries would cost you $3.07, and in February 2026, the same pint cost just $2.92.

Shop for in-season, Northwest-grown fruits and vegetables (PDF) — which should also cost less and often taste better than out-of-season produce. Freeze strawberries, blueberries and other in-season produce when you spot a great sale.

3. Buy Smaller Quantities

If you prefer fresh fruits and veggies, think about only buying enough to get through a day or two. You'll go to the store more often but throw out less food.

Just be sure to keep eating those colorful foods. Veggies and fruit provide lower-calorie nutrients and filling fiber. Fruits and vegetables can reduce cholesterol and help reduce your risk of heart disease — and staying healthy can help save money in the long run by reducing your medical bills.

How To Save on Dairy Products

1. Buy in Bulk

Buying milk and yogurt in larger volumes can reduce costs per liter or quart, but be careful you aren't throwing more away, too.

2. Compare Carefully

Cheese prices fluctuate all the time. Processed cheese prices have fallen in the past year. American processed cheese is now $4.68 per pound, lower than natural cheddar cheese at $5.99 per pound.

How To Save on Grains

1. Buy Ingredients Instead of Prepared Foods

It might not be the worst idea for your grocery bill or your health to cut back on prepared foods such as crackers, rolls, frozen pies, cookies and cakes which increased due to sugar and labor costs. Try making your own instead. Flour didn't top the inflation list and is still comparatively low-cost. For example, white, all-purpose flour is $0.57 per pound — but buying chocolate chip cookies costs almost 10 times as much, at $5 per pound, according to CPI data.

2. Buy Whole Grains in Bulk

Many whole grains can be found in the cost-conscious bulk aisle, making the unit cost less than purchasing a package's worth. Fill your pantry with ingredients for your favorite dishes, or just buy a small amount for that one special meal. Many whole grains don't go bad, so you can stock up and have what you need on hand when the mood to cook strikes.

How To Save on Beverages

We looked at CPI data for a variety of beverages. You've probably noticed that your morning latte or drip costs far more now. Prices jumped 30% from 2025 to 2026. Orange juice also jumped almost 9%.

In the past year, wine and beer were least affected.

Switch to a pitcher of fresh tap water in the fridge. Add flavor with cucumber, mint or other herbs, fruits and vegetables.

Other Tips To Save at the Grocery Store

While you can't reverse grocery inflation, these money-saving tips might help you manage it:

1. Watch Out For 'Shrinkflation'

Some manufacturers are shrinking package sizes while charging the same. This is called "shrinkflation," and food brands hope you aren't paying attention. When shopping, compare brands by looking for the item's unit price on the shelf label per pound, ounce, or however the food is measured. 

2. Buy Store Brands

Buy store brands to save up to 40% on your grocery bill. Everyday items you might find as store brands include canned tomatoes, oils, milk and frozen fruits and vegetables.

3. Look For Coupons

Don't worry about finding the scissors and this week's circular. Many Seattle-area retailers now offer smartphone apps with coupons. Favorite food manufacturers may also offer coupons on their websites.

4. Make a Menu

Create a week or few days' menus, and shop with a list to avoid impulse purchases and repeated store visits. Freeze leftovers for future meals — and prevent last-minute binge buys from a random burger joint.

5. Shop Different Stores

If you've found prices increasing dramatically at a local Seattle-area store for something you buy regularly, shop around. Investigate international stores, grocery outlets, membership clubs and big retailers like Target or Wal-Mart. You never know where you might find a new deal.

Knowing Costs Can Help You Save

It's one thing to know inflation is driving up your overall expenses, but it's another to figure out how to pay for essential items. Taking a closer look at the cost of items you buy frequently can help you adjust your shopping list and save at the store.

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