For those of us in the Northeast, Memorial Day marks the unofficial start of summer. For our family, one of our favorite things about summer is the great food. After a long winter, there is something special about firing up the grill and sharing meals with loved ones. There’s just one problem – food prices have skyrocketed in recent years.
While year-over-year food price increases have slowed down (only a 1.2% increase from 2023 to 2024, Source: USDA), the cumulative impact of inflation takes a toll on consumers. Over the past five years, the food category within the Consumer Price Index (CPI) has increased nearly 23%. This is especially impactful when you consider that the three major categories with the largest cumulative price increases – transportation, food, and housing – also represented the three largest categories of U.S. household consumer expenditures as of 2023:
What causes food inflation?
Inflation is a complex phenomenon that is impacted by factors globally, nationally, and locally. Price increases in areas like transportation and labor also have a trickle-down effect on food prices. Some of the main factors that have contributed to food inflation are:
- Transportation Costs: Most food is not grown and produced locally. It must be imported or transported from somewhere else to your grocery store. As seen above, transportation has experienced the largest cumulative price increase since 2020 at nearly 35%. Higher transport costs force stores to pay more to keep their shelves stocked, and that price is often passed on to consumers.
- Higher Input Costs: Overall input costs have also increased. Examples include fertilizers and pesticides used to grow food, animal feed, and rising wages that make labor more expensive.
- Supply Chain Disruptions: The most recent example of this has been the price of eggs in the United States. From 2024 to 2025, egg prices increased by 49.3% (Source: U.S. Bureau of Labor Statistics). This has been tied to bird flu outbreaks that reduce egg laying supply.
What can you do about it?
Our family uses budgeting software to track how our expenses compare to the national averages (if you don’t use budgeting software to track expenses, I highly recommend it!). At the end of 2024, at-home eating and dining out was 15% of our budget. Given recent price increases and because it was a significant portion of our budget, we decided to make some changes to try and fight back against inflation.
With extra effort and planning, I’m happy to share that our food expenses are down 13% from this time last year. Here are some strategies that have been successful for us.
Comparison Shopping
This one can take some getting used to. Time is our most valuable resource, and we don’t have a lot of it during a busy week. The convenience of one-stop shopping and knocking out your entire grocery list is appealing. But with some extra effort and planning, comparison shopping can help stretch your food budget.
- Take advantage of technology: Most major grocery stores have an app that allows you to build a grocery list and compare prices. You can easily compare similar products from different retailers. Most apps also highlight sales, discounts, and coupons. There are even price-tracking apps that can help you compare prices.
- Consider store brands: Store brands are often cheaper and surprisingly similar in quality to name brand items.
- Compare Fresh vs. Frozen: Frozen fruits, vegetables, meats, and seafood are sometimes cheaper and may last longer.
- Divide & conquer: If you have to shop at multiple stores, try breaking up the list with your spouse, significant other, friend, or family member.
Support Local Farmers
One powerful yet overlooked way to manage food inflation and strengthen your community is to support local farmers. Our family has discovered some great local farms by checking out farmers’ markets. Not only is this a fun activity as a family, but we often stumble upon fresher, healthier, and more cost-effective options.
You can also buy directly from local farms or co-ops. Many small farms offer online ordering, home delivery, or farm pickup. We buy from a farm that provides local pickup throughout the week at various locations. We place an order over the weekend and go to the most convenient pickup spot on Wednesday to grab our things. They provide high quality produce, eggs, dairy products, and meat products that are often fresher, taste better, and are cheaper than grocery store items.
Embracing the Freezer
When used strategically, your freezer can be a powerful tool to stretch your grocery budget and minimize food waste. One of the best purchases our family made last year was a stand-up freezer for our basement. This has helped us in several ways:
- Reduce Food Waste: Rather than keeping leftovers in the fridge for a week and then throwing them out, we pop them in the freezer. This way we can pull them out in the future for a quick meal in a pinch instead of ordering in or going out to eat.
- Cook Once, Eat Twice: Cooking large meals like soups and casseroles in bulk and freezing leftovers saves time and money.
- Buy in Bulk: Buying certain products in bulk – like meats, frozen vegetables, and pantry staples – can be more cost-effective. We recently purchased a quarter cow from our local farm. We eat the meat over several months rather than buying it every time we go to the grocery store.
Meal Planning & Prep
This requires an upfront effort but can transform your food routine into a system that supports your budget and health.
- Thursday evening: Plan meals for the following week
- Friday & Saturday morning: Grocery shop
- Saturday & Sunday: Spend a few hours both days prepping meals for the upcoming week. This includes lunches to take to work and dinners to heat up quickly after a long day.
Meal planning and preparation has given us control over the ingredients we consume and avoids the stress of figuring out a meal at the last minute. It also helps ensure that we get family time around the dinner table. Having meals ready to go gives us more time to sit and enjoy each other’s company before heading to the next activity.
More Meals at Home
I LOVE going out to dinner. It’s a great way to connect with friends and family. We have some great local restaurants here in Rochester – as I’m sure you do wherever you’re reading this from. But it’s not usually cost-effective when you’re trying to reduce food expenses. We’ve tried to be more intentional about when we are going out to eat to avoid spontaneous restaurant trips or fast-food delivery when we don’t feel like cooking. Having a meal plan and preparing food at the beginning of the week keeps us on track.
Conclusion
Food inflation may feel out of our control and, in many ways, it is. But the good news is that we’re not powerless. With extra planning and intentionality, it is possible to reduce the impact rising food costs have on our daily lives. From comparison shopping and meal prepping to supporting local farmers and making better use of the freezer, small adjustments can lead to real savings over time.
As we head into summer, I hope this encourages you to try one or two new habits that might stretch your grocery budget a bit further. Inflation is a persistent challenge, but it doesn’t have to define our experience. With the right tools and mindset, we can navigate this season wisely—and still enjoy the best summer cooking has to offer.
Disclosures: This commentary is provided for informational purposes only and should not be construed as personalized investment, legal, or tax advice. The views expressed herein reflect the current opinions of the author as of the date of publication and are subject to change without notice. This material is not intended to serve as a recommendation or endorsement of any particular financial strategy, product, or service. Any references to budgeting tools, grocery retailers, or specific purchasing strategies are for illustrative purposes only and do not constitute an endorsement or guarantee of effectiveness. Past performance is not indicative of future results. Certain information has been obtained from third-party sources believed to be reliable, including the U.S. Department of Agriculture (USDA) and U.S. Bureau of Labor Statistics (BLS). While we believe these sources to be accurate, we make no representation as to their completeness or accuracy. Charts and graphics used in this article are for illustrative purposes only and may not reflect actual economic or investment performance. Investing involves risk, including the potential loss of principal. Inflation, while commonly discussed in broad terms, impacts individuals and households differently based on spending habits, location, and personal financial circumstances. Readers are encouraged to consult with a qualified financial advisor to determine how inflation may impact their own financial situation and to develop a personalized strategy in response. Howe & Rusling is an SEC-registered investment advisor. Registration does not imply a certain level of skill or training.
