According to the Bureau of Labor Statistics (BLS), food-at-home (groceries) prices rose 2.2% over the year ending May 2025. For the 12 months ending August 2025, food prices overall increased 3.2%, and food-at-home was up 2.7%. From January to June 2025, grocery prices increased 1.8%, compared with a 20-year average of 2.0%.
A recent survey found 47.8% of retirees said they were paying significantly more in groceries in 2025 than in 2024.
Main contributors to grocery price hikes in 2025 include higher transportation and fuel costs, climate-driven crop disruptions, and tariffs on imported goods that increased costs for staples like produce and seafood. Food producers are also passing along rising labor and packaging expenses, while retailers continue subtle “shrinkflation”—smaller packages for the same price. Together, these factors have kept grocery prices rising even as overall inflation cooled elsewhere in the economy.