10 States Where Grocery Costs Are Hitting Families the Hardest
It's no secret: Your grocery bill is higher this year than last due to inflation. You might not know that it may be significantly higher than someone in the state next to you – and not for reasons you might assume. "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. 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," explains Chris Lupo, WalletHub analyst. Based on WalletHub's data, the 10 states feeling the pinch the most—where grocery costs take up the highest percentage of median household income—are:
Mississippi Feels the Biggest Grocery Burden
According to the WalletHub data, southern states bear most of the grocery burden. Mississippi residents spend 2.64% of their median household income on groceries, the highest percentage in the country. While grocery prices in Mississippi are relatively low, the state also has the lowest median income, just $52,985, making food costs a significant financial strain. ""People in Mississippi spend the most on groceries, which have an average cost of 2.6% of the median monthly household income, the highest percentage in the country. Interestingly, grocery prices in Mississippi are actually relatively low – the ninth-cheapest in the nation. The main problem lies in the fact that Mississippi has the lowest median annual household income in America, at just $52,985. So even with relatively low grocery prices overall, Mississippians are spending a higher percentage of their income on groceries than people in any other state," says Lupo.
West Virginia Struggles with High Grocery Costs
Over in West Virginia, with the second-lowest median household income in the country, at $55,217 per year, people also spend a good amount of their paycheck on groceries. The southern state ranks second, with 2.57% of median household income going toward food, making it challenging for residents to keep up with rising food costs, even though some grocery items remain affordable compared to other states. Some groceries are more expensive in West Virginia than in most other states, as it has the ninth-highest egg prices, the 7th-highest potato prices, and the 16th-highest sausage prices in the country.
Arkansas Residents Spend a Large Share on Groceries
In Arkansas, with a low median household income of only $56,335 per year, 2.49% of earnings go toward groceries. Despite having the eighth-cheapest grocery prices in the country, the state's low median income means residents still feel the financial squeeze. The birthplace of Bill Clinton ranks among the 10 least-expensive states for fourteen types of food, including chicken, potato chips, corn flakes, frozen meals and sausage. However, some items, including T-Bone steak and potatoes, are more expensive than most other places.
Kentucky Households Face Rising Grocery Expenses
Kentucky, another state with lower-than-average wages, is also experiencing grocery cost woes. Families allocate 2.41% of their earnings to groceries, per the WalletHub study. Even though some food prices remain manageable, the state's lower wages make it harder for residents to afford essential items.
Louisiana Families Struggle with Grocery Costs
Rounding out the top five is another southern state. In Louisiana, where wages are lower than the US average, households spend 2.39% of their median income on groceries. While food costs in the state aren't the highest, the lower overall earnings make grocery shopping challenging for many residents.
New Mexico Residents Feel the Grocery Squeeze
New Mexico is the only non-southern state in WalletHub's top 10 list where people are struggling to pay for groceries. According to the findings, 2.36% of household income goes to groceries. New Mexico ranks among the hardest-hit states as many families struggle to balance grocery costs with other financial obligations.
Alabama Sees a Large Chunk of Income Spent on Food
Back in the south, Alabama residents rank seventh in how much they spend on groceries. With a lower-than-average wage, they spend 2.34% of their earnings on groceries. Rising food prices paired with lower wages make it difficult for many households to make ends meet.
South Carolina Faces Grocery Cost Challenges
South Carolina, another southern state, also spends a lot on groceries. According to the WalletHub findings, households allocate 2.27% of their income to groceries. While some grocery items remain affordable, the overall impact of food costs on household budgets is significant. The wages are also lower than average.
Tennessee Residents Struggle with Food Costs
Tennessee ranks ninth on WalletHub's list. Another southern state with lower-than-average wages, residents are struggling, spending 2.23% of median household income on groceries. Food prices in the state aren't the highest, but limited wages make it harder for families to afford essentials.
Oklahoma Rounds Out the Hardest-Hit States
Rounding out the top 10 list is another southern state. In Oklahoma, wages are lower than average, have also been hit hard. Households spend 2.21% of their income on groceries, making it one of the states most affected by rising food costs. Lower wages play a key role in making groceries a significant financial burden.
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