Digest This: U.S. Food Costs Rise by 19% Since 2022

Despite a slowdown in inflation since the pronounced increases during the pandemic, the high cost of food remains a significant burden for consumers.

In December, food prices had an annual growth rate of 3.1%, surpassing the general inflation rate of 2.7% for all products. This increase was the highest seen since September 2022.

Rob Holston, a consumer products expert at EY, noted that December's report indicates rising prices in crucial consumer sectors. The Consumer Price Index, which measures price changes over time, is a tool for this analysis.

According to David Ortega from Michigan State University, the frequent visits to grocery stores constantly remind consumers of the continued escalation in food prices.

Certain food categories have reached unprecedented costs, contributing to a nearly 19% overall rise since the start of 2022, as revealed in recent analyses.

Various drivers are behind the increased food prices, including limited beef availability, café tariffs, and severe weather conditions.

Efforts to reduce prices were made in November with certain food tariffs, yet any significant easing of prices, experts speculate, will take time to manifest.

On a brighter note, egg prices, after a significant hike these past years, dropped by nearly 21% annually as of December. From a high of $6.23 in March 2025, they fell to $2.71 by the year's end.

Costs of Dining Out Climb

Escalating costs are not limited to grocery shopping. The expense of eating at restaurants continues to climb, with December showing a 4.1% annual rise, a rate higher than the overall inflation.

Joe Hannon of Restaurant365 explains that several factors like increased labor and utility costs have intensified the financial pressures on restaurant operations.

He's observed that menu price adjustments are not due solely to single cost spikes but rather because various costs remain elevated, forcing operators to maintain or increase prices despite headline inflation appearing to cool.

The growing post-pandemic trend of dining out further drives up menu prices due to persistent demand in the face of rising costs, as noted by Ortega.