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A study from WalletHub called States Where People Spend the Most & Least on Groceries was released on Thursday, Feb. 13. Despite higher food costs, residents in many Northeast and mid-Atlantic states spend a smaller share of their incomes on groceries compared to others.
WalletHub said the cost of groceries has surged more than 25 percent since 2019, straining household budgets as inflation continues to outpace wage growth.
"While grocery prices have gone up tremendously in recent years, the states in which people spend the greatest percentage of their income on groceries actually aren't those with the highest prices," said WalletHub analyst Chip Lupo. "Instead, the median incomes in these states are quite low, so even with reasonable grocery prices, residents end up shelling out a higher percentage of their earnings than people in states with more expensive products."
New Jersey ranked as the state where groceries take up the smallest percentage of household income, with food expenses accounting for just 1.5 percent of median monthly earnings. The average grocery bill in the Garden State totaled $121.04 per month.
Among individual grocery items, New Jersey's banana prices were the sixth-highest in the US. Other grocery staples were around the national average, with the state ranking 23rd for eggs, 24th for sugar, 25th for dishwashing detergent, and 34th for ground beef prices.
The study also said Maryland, Massachusetts, New Hampshire, and Connecticut are among the least impacted, all placing in the bottom five for grocery spending relative to income. Virginia came in 43rd place and New York finished 35th.
By contrast, Pennsylvania ranked 29th with a higher burden from grocery prices than its eastern neighbors. In 14th place, Maine was the Northeast state where residents spend the greatest share of their income on groceries.
Mississippi residents spend the largest amount of their salaries, with an average of 2.6 percent of the median household income going to groceries. West Virginia, Arkansas, Kentucky, and Louisiana rounded out the top five.
The study analyzed the cost of 26 common grocery items in each state and compared them to the median household income to determine affordability.
"Often, folks think there is this magic formula or Harry Potter-esque Patronus spell that can resolve our high cost of living expenses (especially groceries) with a swoop of the Elder Wand," said Fordham University business professor Mario DiFiore. "As we said in The Bronx, where I grew up, 'It is not happening.'"
Northwestern University marketing professor Eric Anderson said one tip to help save at the supermarket is to plan your meals each week.
"When choosing your weekly menu, you can save by selecting recipes or meals that are more affordable," Anderson said. "For example, substitution of ingredients is one simple way to save or you might skip an expensive ingredient that is not essential to the meal. Probably the best way to save money is to plan around weekly promotions offered by your grocery store."
The study's release came a few days after federal data said overall inflation climbed 3.3 percent in January, slightly ahead of economists' predictions. Several factors have fueled that rise, including economic uncertainty surrounding President Donald Trump's policies, consumer spending habits changing, and the ongoing bird flu outbreak.
Egg prices had a very dramatic jump from December 2024, surging 15 percent in the biggest monthly increase since 2015.
You can click here to see the States Where People Spend the Most & Least on Groceries list from WalletHub.
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