American households are working to lower their grocery bills as food prices continue to climb faster than the Federal Reserve's inflation target. According to the Bureau of Labor Statistics, overall food prices were up 2.5% over the last year, with food purchased away from home rising nearly twice as fast at 3.5%, while food bought at home increased 1.8%.
Financial experts recommend several straightforward tactics to reduce spending. Kelli Smith, executive director of financial planning at Edelman Financial Engines, said consumers can save money by planning ahead and creating a traditional grocery list based on weekly meal plans. Smith also suggested that households can achieve meaningful savings by making substitutions when items go on sale, such as choosing chicken over beef, or by selecting store-brand products instead of national brands. Buying staple items in bulk can work, Smith noted, but only for products households will realistically use before they expire.
Additional strategies include taking advantage of digital coupons and loyalty programs, though Smith cautioned that consumers should avoid chasing deals that would lead them to buy items they would not otherwise purchase. She emphasized that reward programs work best when they align with normal spending habits rather than when consumers change their behavior to chase benefits. Opening store credit cards specifically for rewards, Smith warned, can end up costing more than any savings gained.
Ted Jenkin, president of Exit Stage Left Advisors, recommended that consumers check their pantry, refrigerator and freezer before shopping to avoid buying duplicates. He suggested limiting grocery store visits to once a week rather than making multiple trips, and stressed the importance of checking unit prices on labels, noting that larger packages are not always cheaper. Jenkin also advised households to pay attention to proper food storage for items like raw meat, milk and produce, as each has specific storage needs that affect how quickly they spoil.
For savers and households on fixed budgets, persistent food inflation means that deliberate shopping strategies and meal planning have become practical necessities to manage rising grocery costs in a household budget.