Source: USDA news release
Retail food price inflation varies by locality. In 2023, food-at-home (grocery) prices rose the fastest in Houston, TX, by 7.8 percent, followed by Boston, MA, at 7.0 percent. In contrast, food-at-home prices declined by 1.3 percent in 2023 in Anchorage, AK, and rose by the lowest amount (1.7 percent) in Honolulu, HI.
Across the United States, food-at-home prices increased by 5.0 percent on average in 2023. Differences in retail overhead expenses, such as labor and rent, can explain some of the variation among cities, because retailers often pass local cost increases to consumers in the form of higher prices. Furthermore, differences in consumer purchasing patterns for specific foods may help explain variation in inflation rates among cities.
Products that consumers purchase vary regionally, and each metro area’s inflation rate is calculated based on a representative set of foods unique to the area. For example, an area whose residents purchase more foods with slower price inflation (such as fresh fruits and vegetables at 0.7 and 0.9 percent average growth in 2023, respectively) might experience lower food-at-home price inflation than an area whose residents buy more cereals and bakery products or nonalcoholic beverages, which increased by 8.4 percent and 7.0 percent, respectively, in 2023.
