Companies and retailers finally cut prices in response to U.S. consumer frustration and lack of cash

U.S. companies are finally taking American consumer frustration over inflation and high prices seriously. "Companies from Clorox to Kraft Heinz are finally realizing that half of American consumers can’t afford what they are selling," report Sarah Nassauer, Heather Haddon and Natasha Khan of The Wall Street Journal. 

Kraft Heinz has lower prices on several popular
grocery items.

For the food industry and retailers, having half of the U.S. population — roughly 180 million Americans — struggle to put food on the table isn't good for business, even when those businesses are making money. The Journal reports, "To appeal to cash-strapped and inflation-weary shoppers, the companies are launching smaller and cheaper products, pitching value packages and, in some cases, reversing price increases."

Companies like Target, Walmart and Coca-Cola are aiming their deals at lower-income Americans who are being squeezed by gas prices, food inflation and wages that aren't keeping up with costs. "Walmart executives said that they had lowered the price tag on 7,200 items and planned to use the company’s tariff refund to fund further price cuts."

Kraft Heinz has reduced prices on several of its staple products, including Oscar Mayer Deli Fresh products and Maxwell House coffee. It plans to "absorb about 80% of its inflation this year," Nassauer adds. The company's CEO, Steve Cahillane, told the Journal, “The consumer can only absorb so much.”

Target's lower toy prices have increased
sales. (Target photo)

Even car companies have gotten the memo. "Jeep maker Stellantis, which also makes Ram trucks and Chrysler minivans, is planning seven new cars 'under the $40,000 range,'" Nassauer writes. It's also planning for two new car models that will retail for under $30,000.

Several companies that voluntarily slashed prices are seeing sales volumes increase. Target’s successful toy department price cuts are an example. In a recent meeting, the company told investors that "it is experiencing 'tremendous growth' in its toy department, where it has introduced offerings priced at $20 or less," the Journal reports.

Meatpacker strike at one of the county's largest slaughterhouses continues as negotiations fizzle

JBS Foods is the leading beef producer in the world.

As nearly 3,800 JBS meatpackers at Swift Beef Company in Greeley, Colorado, remain on strike for the third week, the possibility of disruption to the U.S. beef supply and increased beef prices grows.

"Negotiations between the company and union representatives have stalled," reports Tony St. James for RDF TV. "The strike, which began on March 16, centers on allegations of unfair labor practices, wage concerns, and workplace conditions."

JBS is the nation's biggest beef supplier, and the Greeley plant is one of its largest slaughterhouses, which, in many cases, would bring JBS to the bargaining table to get workers back on the line. But in today's economy, where meatpacking companies have been losing money due to "excess slaughter capacity," JBS has little incentive to move negotiations forward, report Matthew Brown and Colleen Slevin of The Associated Press.

With the Greenly plant nearly shut down, and other slaughterhouse "capacity reductions — including the closure of a major Tyson Foods’ plant in Nebraska — JBS and other companies are seeing profits increase," AP reports.

The economic timing may mean the strike drags on until JBS sees some economic benefit to discussing any concessions. St. James writes, "Union officials say the company has not returned to the bargaining table, while workers are seeking higher wages that better reflect inflation. The dispute follows months of negotiations" in which JBS offered a 2% wage increase.

The last slaughterhouse strike happened at a Minnesota Hormel plant in 1985. AP reports, "That strike lasted more than a year and included violent confrontations between police and protesters."

Bulk-beef purchases require an investment, but they can help family grocery budgets, cattle farmers and butchers

Graphic by Adam Dixon, Offrange

Whether it's juicy burgers, a tender tri-tip roast, or the rich flavor of grilled steaks, many Americans love their beef. But affording red meat -- even ground beef -- has become trickier for many household budgets. For some families, purchasing a whole or part of an entire cow could be the answer to beef dinners that don't empty the grocery wallet, reports Emma Glassman-Hughes for Offrange. 

Today's meat industry has accustomed most U.S. consumers to choosing beef cuts from grocery store shelves lined with plastic-covered trays, offering a variety of cuts at a wide range of prices. "But with increasing social, political, and economic instability, some [experts] are predicting more Americans will attempt to insulate their pantries. . . by buying their meat in bulk directly from farmers," Glassman-Hughes explains. 

Bulk beef purchases cost more upfront, and consumers pay one price per pound for all cuts. However, the initial cost of half a cow (also known as a side of beef) can be $1,300, which can be cost-prohibitive, even though the price per pound ranges from $6.50 to $7.00, which is a significant savings for family grocery budgets. To offset the costs, some families opt to go in together when purchasing a side of beef and then divide the spoils. Sharing a side of beef purchase also helps consumers reduce the freezer storage space needed. 

A direct-sale bulk meat purchase also helps cattle producers and local economies. Michele Thorne, who heads up the nonprofit, the Good Meat Project, which focuses on helping Americans afford more ethically produced meat, told Offrange, “I enjoy supporting a local farm, because I know that my money is staying in the community, in the state."

While some cattle farmers handle the butchering for their customers, in more remote locations, cow-purchasing customers have to arrange their own butcher, which sometimes requires planning months in advance. Glassman-Hughes explains. "This country’s butchering industry has been shrinking for the last half-century, stretching the remaining butchers to their limits."

Even with the initial planning for upfront costs, freezer space and a butcher, the "experience of buying meat directly from a farmer instead of shrink-wrapped at the grocery store would seem to outweigh the negatives for many," Glassman Hughes adds. "Thorne believes that, if nothing else, buying directly from farmers and butchers goes a long way toward strengthening the overall community fabric."

Find step-by-step "buying half a cow" tips and instructions here. 

Secretary of Agriculture plans to have all food stamp beneficiaries recertify to receive benefits

Recent SNAP spending peaked around 2020 during the Covid pandemic. (The Conversation graph, from USDA data)

The secretary of the U.S. Department of Agriculture, Brooke Rollins, announced last week that all Supplemental Nutrition Assistance Program (SNAP) recipients will be required to recertify to continue receiving benefits. 

Rollins said recertification is needed to help root out fraud and corruption in the SNAP program, formerly known as food stamps, reports Grace Yarrow of Politico. 

Rollins told Newsmax that she plans to “have everyone reapply for their benefits, make sure that everyone that’s taking a taxpayer-funded benefit through . . . food stamps, that they literally are vulnerable and they can’t survive without it.”

The most common types of SNAP fraud include applicants who lie about their living or financial situations to qualify for benefits, enrollees who trade their food benefits for cash and criminals who "skim" EBT cards to steal their benefits.

Rollins did not give a process or timeline for all SNAP beneficiaries to recertify, but she has "teased an announcement of a new plan to overhaul the program in the coming weeks," Yarrow writes.

President Donald Trump maintained that SNAP is intended for people who can't afford the most basic grocery items and are unable to work.

He told Fox News, "SNAP is supposed to be if you’re down and out. . . But people who are able-bodied can do a job — they leave their job because they figure they can pick this up, it’s easier. That’s not the purpose of it.”

Although SNAP spending peaked at $128 billion during the pandemic, U.S. taxpayers still paid $100 billion for the program in 2024, which served roughly 42 million Americans. 

Rural families will be impacted by pause in SNAP benefits due to federal government shutdown

Roughly 41 million Americans rely on SNAP benefits.
(Photo by Aaron Doucett, Unsplash)

Due to the federal government shutdown, funding for the Supplemental Nutrition Assistance Program (SNAP) will cease soon, and the Trump administration has not made any plans to find money to keep the program running. 

“The pause in food stamp benefits that will hit Saturday, November 1 will disproportionately hurt rural families,” Sarah Melotte and Tim Marema reported for The Daily Yonder.

Food pantries are preparing for a surge in people who cannot afford groceries without SNAP. 

“Rural families top the list of groups that will be affected by the freeze in SNAP benefits. The Daily Yonder found that 13.7% of rural households receive SNAP benefits, compared to 11.4% of metropolitan households,” Melotte and Marema wrote. 

Additionally, SNAP benefits mostly go to households with children, a trend that can be seen in both urban and rural counties.

“Twenty-five Democratic-led states sued the Trump administration on Tuesday to force it to resume food stamps payments,” Julianna Bragg reported for Axios.

As Americans dig into frugality, consumer companies feel the pinch

Some U.S. consumers are learning how to stretch
their staples to save money. (Adobe Stock photo)

As creeping grocery inflation continues, U.S. consumers are clamping down on spending by resurrecting saving and stretching tactics, which is translating into slower sales across the sector. "People are experimenting with frugality, and it is affecting sales at consumer companies," reports Natasha Khan of The Wall Street Journal. The more families pinch pennies, the less they spend.

Devising ways to save on staples has led some consumers to begin diluting products, such as dishwashing liquid or cleaners, to get more while using less. Some have decided you don't need a toothbrush full of toothpaste to prevent cavities -- a single dollop at the end of the brush can do the job.

For many consumers, scrapping every bit here and using a little bit less there can save precious dollars, while consumer companies see sales slip. Khan explains, "Procter & Gamble reported volume declined 2% in the latest quarter in its home and fabric-care division, which includes brands like Tide detergent, Dawn dish liquid and Swiffer dusters."

Even as brand-name purchases have dipped, generic product sales haven't increased, suggesting "consumers are using up their inventory and making their existing stock last longer, rather than trading down," Khan adds.

Many consumer companies hope Americans will tire of scrimping and return to their less frugal habits. Andre Schulten, P&G’s chief financial officer, told analysts and investors, "I’m convinced this is temporary."

Trump administration announces no food aid for millions of people in November unless government shutdown ends

Roughly 20 million children rely on SNAP benefits for
food each month. (USDA photo)

As the second-longest federal government shutdown continues, millions of Americans who rely on grocery money from the Supplemental Nutrition Assistance Program (SNAP) may go hungry. 

The upper banner of the Department of Agriculture's website reads, "The well has run dry. At this time, there will be no benefits issued November 1." About one in eight Americans relies on SNAP for food, which includes roughly 20 million children. 

The clash between Senate Republicans and Democrats has left each side blaming the other for the continued shutdown and the possibility of a SNAP benefit pause. Democrats refuse to reopen the government until Republicans negotiate with them on Affordable health care subsidies. "Republicans say Democrats must first agree to reopen the government before negotiation," reports Adriana Gomez Licon of The Associated Press. 

Democrats had hoped USDA Secretary Brooke Rollins would access a contingency fund to cover most of November's SNAP dollars; however, a USDA memo that "surfaced Friday says 'contingency funds are not legally available to cover regular benefits,'" Licon writes. The document notes that contingency funds are reserved for disaster relief.

Most states have also warned SNAP participants that benefits may not be made available on Nov. 1. Licon reports, "Arkansas and Oklahoma, for example, are advising recipients to identify food pantries and other groups that help with food."

Although some states, including Louisiana and Virginia, have told SNAP beneficiaries they plan to continue food aid, it's unclear whether they can legally do so. Licon adds, "The USDA memo also says states would not be reimbursed for temporarily picking up the cost."

American consumers are worried about their energy bills, the job market and the increased cost of groceries

Americans deploy different strategies to counter grocery
costs. (Adobe Stock photo)

Between spiking energy bills and a dreary jobs market, a new poll from The Associated Press-NORC Center for Public Affairs documents the deep stress many Americans feel about their bills and future financial prospects, reports Olivier Knox of U.S. News and World Report. Along with those worries, American consumers continue to look for ways to counter the ever-increasing cost of groceries.

When asked about utility bills, 36% of poll respondents said their "electricity bills are a 'major' source of stress, and a bit more than one half – 54% – said the same about grocery costs, a little more than a year ahead of the November 2026 midterm," Knox writes.

Roughly 47% of polled adults said they were "'not very' or 'not at all confident' they could find a good job if they wanted to," Knox reports. This response marks a big increase from 37% the last time the question was asked in October 2023.

Polled responses were somewhat surprising given the U.S. economy's low unemployment numbers and healthy stock market gains. Knox adds, "But there are worrying signs, including a weakening labor market."

While many Americans express concern about the overall cost of living, most continue to battle ongoing grocery price increases, reports Christopher Kuo of The Wall Street Journal. According to the Labor Department data, since August 2024, the price of "coffee increased 20.9%, ground beef was up 12.8%, and bananas rose 6.6%. Dairy, fruits, vegetables and cereals have all become pricier."

In an effort to help stretch their food budgets, some consumers are "cutting back on purchases, stockpiling certain foods or exploring more-affordable stores," Kuo adds. Other shoppers have become choosier about what lands in their cart, while others scour sale-only items.

U.S. food costs are rising due to higher commodity prices for items like beef, along with market adjustments to tariffs. Kuo explains, "Some of these costs have been absorbed by food companies; others are being passed on to consumers."

As traditional food bank volunteers age, finding enough workers to staff pantries is becoming a challenge

Food bank volunteers are often older.
(Photo by Katherine Emery, The Maine Monitor)

Over the past 20 years, the average age of food pantry volunteers has climbed, leading some volunteers to reduce their hours or stop volunteering due to health issues. Meanwhile, there aren't enough younger volunteers to fill their spots.

In rural states like Maine, where food insecurity is a consistent issue, the "nearly 600 hunger relief agencies that get free and low-cost food from Good Shepherd Food Bank rely on volunteers," reports Elaine Appleton Grant of The Maine Monitor. "This includes 250 food pantries as well as soup kitchens, senior centers, shelters, schools and youth programs."

Food banks thrive with a regularly scheduled staff of volunteers working planned shifts, but many younger generations are more likely to sign up for limited-time commitments. Grant explains, "Younger volunteers are increasingly seeking out what the Minnesota Alliance of Nonprofit Advancement calls 'event-based' volunteering — one-time efforts with no commitment to future shifts."

In many places, it's not that younger people don't want to volunteer, but they're often limited by working so many hours to pay their own bills. Grant writes, "Just 20% of millennials volunteer in Maine, half the rate of Gen Xers and baby boomers." Researcher Quixada Moore-Vissing told Grant, "I would categorize it as being an overwhelmed and overworked society."

Faced with a volunteer shortage in September, Second Harvest Heartland in Minnesota "had to delay the distribution of thousands of pounds of food," Grant reports. "As a result, food pantries in Minnesota and western Wisconsin got the food later than expected."

Trump administration cancels household food security report

Photo by Austin Kehmeier, Unsplash

The annual report on household food security produced by the Department of Agriculture (USDA) will be discontinued, Dan Frosch, Patrick Thomas and Andrea Petersen of The Wall Street Journal reported.

The 2024 report is set to be released on Oct. 22 and will be the last of a series of reports that started in 1990 as a result of a 10-year comprehensive plan that was developed in accordance with the National Nutrition Monitoring and Related Research Act (NNMRR).

A press release from the USDA stated that the reports were “redundant, costly, politicized, and extraneous,” and “subjective, liberal fodder.”

Despite concerns from researchers, policy analysts, academics and others across the nation, the USDA states that it has other “timely and accurate data sets available.”

You can read more about how the USDA defines food insecurity and the survey questions they use here.

U.S. consumers battle with ongoing high prices by foregoing splurges and focusing on money-saving strategies

Americans are worried about stubbornly high
grocery prices. (Adobe Stock photo)

Frustrated with continuously high food and staple pricing, many U.S. consumers are combating grocery store costs with money-saving tactics and spending reductions. "Consumer spending stagnated in the first half of this year, according to federal data issued last week, and the CEOs of Chipotle Mexican Grill, Kroger and Procter & Gamble, among others, are telling investors that their customers are more strapped — or appear to feel that way," report Katherine Hamilton and Natasha Khan of The Wall Street Journal. 

Eyeing an uncertain job market, ongoing inflation and anticipated tariffs, shoppers are opting to spend their dollars on "essentials and forego the extras," the Journal reports. "P&G, which sells daily-use items such as Tide, Charmin and Pantene, said it is noticing signs of slower spending across essential products, too."

Low-income and higher-income shoppers have pulled back on spending sprees to focus on making their budgets stretch further. "Americans are using up the goods in their pantry and seeking value by buying in bulk to economize or purchasing smaller packs to spend less," Hamilton and Khan explain. "At Kroger, shoppers are making more trips to the store but putting less in their carts. They are also clipping coupons again. . ."

The cost of living and worries over being able to afford it has become a common theme for many Americans. "A May poll of consumer sentiment conducted by consulting firm McKinsey found most people planned to adjust their spending in response to tariffs," Hamilton and Khan write. "Rising prices was the top concern of those surveyed, far outweighing issues such as immigration, international conflict and political polarization."

SNAP cuts, requirements could leave more rural Americans hungry; critics say benefit to taxpayers unclear

Critics of  proposed cuts to the Supplemental Nutrition Assistance Program (SNAP) are struggling to find evidence of how they will help U.S. taxpayers. But they say one thing is clear: The changes outlined in the One Big Beautiful Bill could leave thousands of rural Americans hungry.

"Cuts to SNAP would affect residents of every state in all types of communities, but advocates fear the fallout could especially hit rural people, who are more dependent on food stamps, the largest anti-hunger program in the nation," reports Kevin Hardy for The Daily Montanan. The bill "expands work requirements to include people between 55 and 64 years old and those with children aged 7 or older." It contains stiffer rules for counties with higher unemployment numbers.

Government penalties for not working a required number of hours are dramatically tougher on rural residents because more remote places have far fewer business and employment opportunities. Hardy adds, "Rural hunger is already on the rise and grocery stores face an uphill battle to keep going in the most isolated parts of the country."

Residents in southeastern Missouri's Mississippi County, many of whom can scarcely afford a roof over their heads and food on their tables, provide an example of who SNAP cuts will hurt the most. Hardy explains, "Limited job opportunities leave many workers struggling to cover housing and grocery bills. Nearly a quarter of residents live below the poverty line — almost double the state and national averages."

SNAP cuts stand to do irreparable harm to rural grocery stores that already face razor-thin profit margins. "The National Grocers Association has opposed the potential cuts, saying SNAP provides not only critical food, but also meaningful boosts to local employment and economies," Hardy reports. "The organization, which represents retail and wholesale grocers, said cuts will particularly hurt independent and rural stores."

"Deep cuts to SNAP would have an uneven impact on rural stores," Hardy explains. "For Kay Voss, the cuts would be catastrophic at her Stratton Country Market in southwest Nebraska. She estimates 40% of sales are paid for with SNAP." She told Hardy, "“I’d probably close the doors."

Hungry people have fewer places to go in rural America, which adds stress to regional food banks that have already faced an uptick in need because of food inflation. Hardy reports, "Cuts to the SNAP program will drive up demand on food banks, especially in rural areas that have long struggled with access and transportation to secure fresh foods."

U.S. food bank system is in distress: 'The urgency of this crisis cannot be overstated'

The Food Bank of Northern Nevada delivers fresh food to seniors,
including those in rural communities. (KFF Health photo)

Slapped with funding cuts and spiking demand, food banks are limping forward without a clear idea of how to fill the gaping hole federal resources used to fill. The financial cuts are especially hard on rural food banks that may lack access to food donations from multiple businesses and grocery stores.

"Food bank managers across the country say their supplies have been strained by rising demand since the Covid pandemic-era emergency Supplemental Nutrition Assistance Program benefits ended two years ago and steepening food prices," reports Jazmin Orozco Rodriguez of KFF Health News. "Now, they say, demand is compounded by recent cuts in federal funding to food distribution programs that supply staple food items to pantries nationwide."

The deep cuts began in March when the Department of Agriculture lopped off $500 million from the Emergency Food Assistance Program, which purchases food from U.S. farmers and distributes it to food banks across the country. Rodriguez writes, "The program has supplied more than 20% of the distributions by Feeding America, a nonprofit that serves a network of over 200 food banks and 60,000 meal programs."

Additional demand paired with waning resources "is especially problematic for rural communities, where the federal program might cover 50% or more of food supplied to those in need, said Vince Hall, chief government relations officer of Feeding America," Rodriguez explains. The EFAP was a lifeline for rural residents facing food insecurity, but that safety net is gone. Hall told Rodriguez, “The urgency of this crisis cannot be overstated."

Local food banks are also grappling with a second $500 million cut from the USDA Local Food Purchase Assistance Cooperative Agreement Program, which aimed to help governments and schools purchase fresh food and produce from local growers.

Reductions to SNAP benefits, such as those currently being considered by lawmakers, could mean some Americans will go hungry. "A proposed budget resolution passed by the U.S. House of Representatives in April would require $1.7 trillion in net funding cuts, and anti-hunger advocates fear SNAP could be a target," Rodriguez reports. "More people living in rural parts of the country rely on SNAP than people in urban areas because of higher poverty rates, so they would be disproportionately affected."

Opinion: Rural Americans already face food insecurity. Will Republican lawmakers leave them even hungrier?

Most Americans don't consider hunger a political
issue. (Adobe Stock photo)

Many rural residents already face the daily struggle of not having enough food. Republican lawmakers eager to cut SNAP benefits may be about to make their battle with hunger worse. "These are anything but good times in rural America, which has been hit by everything from tariffs to extreme weather to bird flu and immigration crackdowns," writes José Andrés in his opinion for The Washington Post. "On top of those crises, Congress is now adding another — threatening to cut federal food benefits as the Republican leadership plays politics with the budget."

Despite rural America being where the country's agricultural powerhouses are, rural residents are more likely to suffer from food insecurity and poverty. "The government’s Supplemental Nutrition Assistance Program, or SNAP — once known as food stamps — is a lifeline for entire rural economies," Andrés explains. "Poverty rates are actually higher outside cities than in them. So it should be no surprise to learn that families in rural counties use SNAP more."

The desire to cut SNAP by Republican lawmakers representing rural regions seems like a particularly harmful mismatch. "In some of the reddest states in the country, where Donald Trump won by 20 points or more in 2024, SNAP benefits are about as widely used as they are in states such as California and New York," Andrés writes. "In Louisiana, where House Speaker Mike Johnson is from, it’s even higher: 1 in 5 count on SNAP to meet their basic food needs."

Congress has planned cuts anyway. "Under the House budget plan, SNAP is facing $230 billion in cuts over 10 years: a massive 20 percent reduction," Andrés explains. "More than two-thirds of SNAP recipients are either children, elderly or disabled. Three-fourths live below the poverty line. For a family of three, that means earning less than $26,650 a year."

Addressing hunger isn't a political issue for most Americans. "Support for hunger and nutrition programs is broad and deep, stretching from evangelical groups to progressive nonprofits," Andrés adds. "Doing good can be good politics. One of the reasons the government exists is to take care of our forgotten neighbors who need a helping hand. If 'America First' means anything, it surely means taking care of the forgotten Americans in so-called flyover country."

Zaytinya photo

José Andrés is a chef, restaurateur and
founder of the nonprofit organization
World Central Kitchen.
Read his full opinion here.

U.S. consumers get smacked with another round of food inflation. Egg prices spike and other costs follow suit.

U.S. consumers endure another round of
food inflation. (Photo by 青 晨, Unsplash)

It's déjà vu for American food costs. The price of eggs and other grocery items are increasing while American consumers face another soul-crushing round of food inflation. U.S. grocery costs "increased 1.8% from a year earlier in December, rising at the fastest pace in more than a year," report Patrick Thomas and Jesse Newman of The Wall Street Journal. "The cost of food overall was 0.3% higher in December, after increasing 0.4% in November."

Why this is happening -- again? "There isn’t one factor. Bird flu is killing chickens, cutting egg supplies and sending wholesale prices to a record," Thomas and Newman explain. "Extreme heat and dry weather in the world’s coffee-growing regions have sent the cost of brews surging. Chocolate and cereal makers have raised prices for their products, too."

It's a problem. "Consumers are still acclimating to a stretch of bruising inflation following the Covid-19 pandemic," the Journal reports. "Grocery prices in December were roughly 28% higher than they were five years ago."

While on the campaign trail, President Donald Trump promised to put a lid on grocery prices -- a promise that could prove difficult to deliver. "Some of the problems underlying food costs, such as disease and bad weather, don’t have quick policy fixes," Thomas and Newman add.

Even as egg prices climb, some egg producers are making hefty profits. "The index for eggs was up 37% from a year ago, and the average retail price of a dozen large eggs increased nearly 14% to $4.15 in December," the Journal reports. "Price increases have helped increase the profits of egg companies, including Cal-Maine, the largest U.S. egg producer, whose stock has doubled over the past year."

The price of meat has also increased but experts predict meat prices will level out. On balance, cocoa and sugar prices have surged. Thomas and Newman write, "A candy company recently said it would raise its prices by 10%." When asked about food inflation, Mark Skogen, CEO of Wisconsin-based Festival Foods, told the Journal, "It just doesn’t end."

Less for more: Grocery prices have increased 25% since 2019, according to an NPR analysis

Grocery prices have increased 23% since 2019. (Unsplash photo)

Two hundred dollars on groceries used to mean you could eat very well. Now, going to the grocery store seems to come with a punch to your bank account at the checkout counter.

Over the past six years, NPR’s Alina Selyukh has been tracking Walmart’s prices to analyze just how much the cost os groceries has increased.

“Compared to 2019, prices on my list, on average, rose 25%... And that's not far from federal inflation data: Cumulatively, U.S. prices are up 23% since 2019,” according to Selyukh, who attributed the majority of price increases to issues related to COVID. “The pandemic shifts were seismic.”

While a Walmart representative wrote in a statement to NPR that the company is “committed to providing an Every Day Low Price experience both in stores and online," it has had to keep up with increases in shipping and manufacturing costs leading to a higher total at the checkout counter, wrote Selyukh and NPR's Juweek Adolphe.

Shipping cost increases led to more expensive fertilizer and paper for packaging, for example. Also, “U.S. companies are paying higher import fees — and passing some of that cost on to shoppers,” Selyukh and Apolphe wrote.

Not only are the items in the shopping cart growing more expensive, but Selyukh and Apolphe have noticed reductions in the quantity of some items. “Tide liquid laundry detergent now comes in a smaller container — 84 ounces instead of 100 ounces — but costs $1 more,” they wrote.

An FDA proposed rule would force food manufacturers to add a 'nutritional info box' to the front of their packaging

The 'nutritional info box' would focus on saturated
fat, sodium and added sugars.

Warning labels for grocery items with salt, added sugar or saturated fat may become the federal government's newest tool aimed at educating U.S. consumers about their grocery choices. "Under a new rule proposed by the Food and Drug Administration, food manufacturers would be required to put new labels on the front of packages flagging key nutrition information," reports Jesse Newman of The Wall Street Journal. The current administration believes bold labeling could help Americans make healthier food choices.

Most packaged foods sold in the U.S. already have nutritional information on the back or side of the box. "The new labels, dubbed a 'nutrition info box,' would go on the front of packages," Newman explains. The box would flag foods as "high, medium or low in salt, added sugar and saturated fat, which the FDA has warned can lead to chronic diseases when consumed in excess."

Most food companies oppose labeling foods with warnings, "The Consumer Brands Association, which represents big food manufacturers, said the rule doesn’t reflect the latest research," Newman reports. "The group said studies show the most effective labels include calories and nutrients to encourage, along with nutrients to limit."

Robert F. Kennedy Jr., who is the incoming Trump administration's prospective next head of U.S. health policy, "has been outspoken about his view that U.S. food companies are partly to blame for sickening Americans," Newman writes. "Consumer advocacy groups and public health organizations cheered the rule." Some groups hope the Trump administration will support more specific labeling, which is used in Chile and Mexico.

The FDA is accepting public comments on its proposal until May 16. Newman adds, "If the rule is finalized after that, food manufacturers would be required to add the new labels to most packaged food products three to four years after it takes effect."

Food industry groups warned they could sue to overturn labeling mandates. Newman adds, "Such labels, they said, could threaten First Amendment rights — because companies could consider them a form of forced speech — and only Congress has the authority to require them."

Thanksgiving dinner is less expensive this year, but the small decline doesn't make up for 2022's dramatic increases

Serving up this year's Thanksgiving dinner will cost 5% less than it did in 2023. The average price of this year's turkey dinner with all the trimmings rings in at $58.08, compared to 2023's, $61.17, and 2022's painful $64.05. And while the decrease is welcomed news, this year's Thanksgiving meal is still 19% higher than it was in 2019, according to the American Farm Bureau Federation's 39th annual survey.

To tally this year's Thanksgiving dinner costs, the AFBF sent out volunteer shoppers who checked prices Nov. 1-7, which is notably before most grocery store chains began featuring deep discounts on whole frozen turkeys. U.S. turkey prices declined in 2024, with the average price for a 16-pound turkey at $25.67 or $1.60 per pound, down 6% from 2023.

Several other ingredient prices declined, including the cost of whole milk, which dropped more than 14%, and the price of fresh vegetables decreased by 6.4%. Those decreases helped offset the price hikes on dinner rolls and stuffing cubes, which increased by around 8%.

Individual Prices:

• 16-pound turkey: $25.67 or $1.60 per pound (down 6.1%)
• 14 ounces of cubed stuffing mix: $4.08 (up 8.2%)
• 2 frozen pie crusts: $3.40 (down 2.9%)
• Half pint of whipping cream: $1.81 (up 4.7%)
• 1 pound of frozen peas: $1.73 (down 8.1%)
• 1 dozen dinner rolls: $4.16 (up 8.4%)
• Misc. ingredients to prepare the meal: $3.75 (down 5.1%)
• 30-ounce can of pumpkin pie mix: $4.15 (down 6.5%)
• 1 gallon of whole milk: $3.21 (down 14.3%)
• 3 pounds of sweet potatoes: $2.93 (down 26.2%)
• 1-pound veggie tray (carrots & celery): $.84 (down 6.4%)
• 12-ounce bag of fresh cranberries: $2.35 (up 11.8%)

Smaller food makers and independent grocers bear brunt of distributors' fees. Bigger grocery stores have the advantage.

Unraveling why some grocery prices are high means
looking at little-known fees. (Adobe Stock photo)

 

As Americans continue to face stubbornly high grocery prices, many are searching for root causes. Turns out, mysterious add-on fees might be part of the problem. "The price of a bag of coconut-cashew granola jumped last year from $5.99 to $6.69," reports Jesse Newman of The Wall Street Journal. "The granola maker said the cost of making the cereal hasn’t gone up that much. . . It jacked up the price, it said, in large part to offset fees that piled up from a little-known link in the supply chain: grocery distributors."

Since the pandemic, bigger grocery chains have raised prices citing supply chain woes, high labor costs and ingredient price hikes. Newman explains, "Many small manufacturers that have raised their prices have another explanation. They say they also are being squeezed by the distributors who act as gatekeepers to many supermarkets."

Avoiding grocery store middlemen isn't easy for smaller food makers. George Milton, who runs a hot sauce business in Austin, Texas, used to deliver his product himself, but that model is no longer realistic. Newman reports. "These days, the chief executive of Yellowbird Foods relies on national distributors to ship his product to stores, a process he said is riddled with obscure costs that make it hard to know what, if anything, he’ll be paid." Milton told Newman, "That’s a really tough way to run a business. But what is the alternative, that I UPS it from one place to another?”

While distributors may look like the problem, it's not easy for them to make a profit either. "Distributors operate on razor-thin profit margins, with limited ability to offset rising operating costs," Newman writes. "The situation reflects a struggle for profit throughout the grocery sector. Big food manufacturers that account for the bulk of sales have pushed through hefty price increases and notched some of their biggest profits in years."

Distributor fees can harm independent grocery stores because larger chains can buy inventory directly and negotiate lower distribution fees. "Distributors’ rules and charges are a symptom of pressures rippling through the supply chain," Newman explains. "Grocers are competing with one another to win shoppers with lower prices. Big food sellers have gained market share, giving them more leverage in negotiations with distributors."

States that still have grocery taxes look to cut them to help residents save a bit more on food costs

Even cereal boxes look alarmed at their
prices. (Photo by G. Fryer, TRB)

After years of grocery inflation, U.S. food prices are so high that many families have tightened their food budgets. And while the average American can't do much more to fight food and staple costs, some states have cut their grocery sales tax to help ease some of the burden, reports Elizabeth Daigneau of Route Fifty. "Earlier this month, Gov. JB Pritzker signed legislation eliminating Illinois' 1% tax on groceries starting in 2026, saying the tax is regressive and hurts low-income Illinoisans."

Even as overall inflation cools "food prices are still far higher than they were pre-pandemic," Daigneau explains. "And grocery shopping is a major expense for all Americans: Food ranks as the third-largest household expenditure, following housing and transportation, according to the Bureau of Labor Statistics. . . Next week, Oklahoma’s 4.5% statewide grocery tax will come off the books."

Many states already eliminated grocery taxes. "With the legislation in Oklahoma and Illinois, now only 10 states impose a grocery tax. That number could soon be down to seven as Idaho is considering eliminating its 6% grocery tax in the 2025 legislative session," Daigneau reports, and Utah and South Dakota voters will decide if their grocery taxes should be nixed during November's elections.