While many Americans perceive food prices as unaffordably high, data suggests that current food costs represent a smaller portion of household budgets than at any point in modern history. Polls indicate that approximately two-thirds of the American public view groceries as unaffordable, a sentiment that has fueled political discourse and proposed policy solutions.
Historically, the percentage of disposable income spent on food has steadily declined. In 1901, the average American family allocated 42% of its budget to food, according to the U.S. Bureau of Labor Statistics. This figure dropped to 23% in 1945, 15% in 1965, and around 12% by 1985. Current calculations from the U.S. Department of Agriculture (USDA) show this percentage at 9.7% for overall food spending, and just 7.9% when excluding dining out and food delivery.
This affordability is further amplified by the diversity and year-round availability of products in the modern American diet, thanks to efficient global supply chains. Consumers can access items from around the world at competitive prices, a stark contrast to previous generations. Comparative international data from the USDA also indicates that Americans spend less of their income on food than citizens of any other nation.
Despite these figures, a prevailing perception exists that the economy, particularly food costs, is worsening. However, since 2017, food costs have risen at a pace slower than overall inflation, settling within the typical pre-pandemic range. For instance, in 2025, overall food prices increased by 3%, with supermarket and grocery prices rising by 2.4%. So far in the current year, overall food prices have seen a 3% increase, with home grocery prices up 2.7%.
Concerns that food prices have outpaced wage growth for most individuals are also challenged by data. Over the past decade, American wages have increased by over 46%, while food prices have risen approximately 34%. While the inflationary policies implemented during the pandemic have had a cumulative effect on prices, many recent spikes in grocery bills are attributed to factors like avian flu impacting egg prices and drought affecting beef costs. These environmental and supply-chain specific issues are often beyond direct presidential control.
Attempts by political figures to influence prices by criticizing corporate executives, such as targeting oil companies for high gas prices, are often symbolic. Unlike the volatile fossil fuel market, the grocery industry is characterized by consistently low profit margins, typically around 2%. In the current year, supermarkets have reported a net profit of approximately 1.32%.
While political grievance can resonate with voters, the data suggests that large grocery chains are not significantly overcharging consumers. The current era, marked by unprecedented abundance and relatively low food expenditures as a percentage of income, stands in contrast to historical human existence where scarcity and starvation were constant threats. Although price increases are a valid concern, the overall context points to a period of remarkable affordability and access to a wide array of food products.