These 10 States Have the Lowest Grocery Prices Right Now—Is Yours One of Them?
Groceries are expensive right now no matter where you live—but location makes a huge impact on just how much you pay. Food Label Maker just released its report on the highest and lowest grocery prices by state, based on average costs per person in 2024, and there is a huge disparity between the cheapest and most expensive (Hawaii, Alaska, and California).
"With rising inflation, understanding where your state stands in terms of grocery affordability has never been more important," said a spokesperson from Food Label Maker via Chain Store Age. "Access to reasonably priced groceries directly impacts the ability to maintain a balanced diet and make healthier nutritional choices. Consumers are increasingly focusing on stretching their budgets while prioritizing the quality and nutritional value of their purchases. This study provides valuable insights that can help individuals and families make informed decisions about their food shopping habits."
So does your state make the list for cheapest grocery prices? Read on to find out.
Georgia
Georgia comes in at number 10 with a 29.30% increase in prices over the past two years. These prices may seem cheaper to someone who lives in California, but that steep increase is nothing to sneeze at for the average Georgia resident.
Tennessee
Tennessee comes in at number 9, with a 20.15% increase in prices over the last two years. State politicians are discussing dropping the grocery sales tax to help people afford the basics. "Do people think that you should get the same tax break for buying a Coke than you should if you're buying a gallon of milk?" Speaker Cameron Sexton told The Tennessean. "I want to do the staples that everybody usually buys, and the other stuff is accessories, for lack of a better term."
Kansas
Kansas has the eighth cheapest groceries in the U.S., and also experienced a 20.11% price increase over two years. A recent drop in sales tax from 2% to 0% for necessities such as eggs and produce will also help customers afford their grocery bills. City and county sales taxes still apply.
Oklahoma
Oklahoma proves to be one of the most affordable grocery states at number 7, but couldn't avoid the 22.32% price hike over the past two years. "It was a key issue in the election in terms of people really feeling that sticker shock at the grocery store," David Ortega, a food economist at Michigan State University, told Tahlequah Daily Press.
Indiana
Indiana comes in at number 6, but also had a whopping 27.20% increase in prices over two years. "There's a real inequality in the economy right now. You know, the inequality between rich households and poor households is the biggest it's been in a century," Phil Powell, executive director of the Indiana Business Research Center and associate clinical professor of business economics at the Indiana University Kelley School of Business tells Indiana Public Media. "You've got wealthy households that have enjoyed a growing stock market, a strong economy, and they've actually been willing to buy more expensive food. But then you have households at the bottom end of the spectrum that feel the inflation and they have gravitated toward cheaper brands at the grocery store."
Kentucky
Kentucky is number 5 on the list and had a relatively reasonable price hike of 13.51%, compared to other states. Considering Arkansas had a 30.75% hike, it could be much worse.
Arkansas
Arkansas is number 4 but had the highest price hike, with groceries being 30.75% more expensive than two years ago. "This sharp rise highlights regional price pressures, even in historically low-cost states," Food Label Maker said.
Mississippi
Mississippi comes in at number 3 on the list, but with a 22.22% rise in prices over two years that is causing significant alarm for local shoppers. "People are running out of options," Michael Ledger, the president and chief executive officer at Feeding the Gulf Coast, told the Sun Herald. "It's just getting tighter and tighter."
Michigan
Michigan is an interesting one—not only is it number 2 on the list, but it's also the only state where prices actually dropped, by 0.98%. The state is currently dealing with an egg shortage thanks to the bird flu outbreak. "It's definitely been a struggle to find eggs in general," Paul Petros, owner and director of Midtown Fresh, tells WWMT. "Our suppliers are trying to spread their inventory to as many stores as they can and not just give it to one store, because they want every community to have some."
Texas
It's official—Texas has the cheapest grocery store prices in the nation even after a 27.16% hike in prices over the last two years. "The state's grocery costs are 9.7% below the national average, making it the most affordable in the study. Even with a 27.16% increase over the past two years, Texas continues to offer significant savings on groceries," according to Food Label Maker.
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