You're Not Imagining It — Groceries Cost Way More In Some Places
- - You're Not Imagining It — Groceries Cost Way More In Some Places
Deepak NarayananJanuary 29, 2026 at 1:00 AM
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A grocery store employee scanning a yellow mesh bag of potatoes. - Zamrznuti tonovi/Shutterstock
If you recently moved from Iowa to Hawaii, the double-take you did when you saw your grocery bill is completely justified. According to data provided by the Bureau of Labor Statistics, groceries cost way more in some places than others. For example, the average weekly grocery bill for a median-income household in Hawaii is $157, while a similar household in Iowa would only spend $108. That's a difference of nearly 40%, which, accumulated over the year, would come to a whopping $2500 — enough to buy a round-the-world air ticket!
Other than Hawaii, where you might as well just eat out all the time (here are 10 iconic Hawaiian foods to try while you're at it), Alaska is the only state where the weekly trip to the grocery store would set a family back by over $150. The comparative number is between $120 and $130 in California, Washington, Florida, and New York — all of which are well above the national average of $111. Meanwhile, Datasembly's Grocery Price Index shows a big difference in the rate of grocery inflation, not just from one state to another but across different ZIP codes. For example, Richmond, Virginia, and Raleigh/Durham, North Carolina, saw increases of around 8% over the last 12 months, while prices in San Diego, California, dropped by 1.4%.
In terms of affordability, states that spend the highest percentage of their income on groceries — Mississippi and West Virginia top the list. According to GoBankingRates, families spent over 10% of their income on groceries in both of these states. There is a whole range of factors that lead to this variance, from supply chain dynamics to population density.
Read more: These 10 Canned Foods Are Healthier Than You Think
Factors that lead to variance in pricing
man in grocery store choosing between two types of olive oil. - Noel Hendrickson/Getty Images
One of the main reasons behind the difference in pricing and grocery inflation is accessibility. Hawaii, for example, relies heavily on imports from the mainland (especially after
GMO research damaged the state's agriculture
). Transport and warehousing costs play a big role here, driving prices up. This is also the case in Alaska, the second-most-expensive state in America for grocery shopping. In fact, the more remote a place, the higher the costs — and
grocery prices in rural Alaska can reach alarming levels
. A bag of chips retails for $6.79 in Anchorage and $10.49 in Unalakleet, which is just 400 miles away but accessible only by plane.
Supply chain dynamics are just one factor contributing to pricing differences between urban and rural areas. Other reasons for price variations within a state include population density and the level of retail competition, which drive prices down. In large metros, higher shopper density leads to more competition and better deals for consumers overall. In rural areas with fewer shops, grocery prices are relatively higher, according to the Grocery Price Index.
Household income is another factor. According to a 2024 study published in the International Journal of Scientific Research and Management analyzing the causes of regional variations in grocery pricing, local economic conditions also have a significant influence. Factors like average income, employment levels, and overall economic health affect how much people can afford to spend. Areas with higher incomes and low unemployment often see higher prices because demand is stronger. In weaker economies, prices may be lower, but shoppers usually have fewer choices.
Have you heard about greedflation?
A woman standing in a grocery store looking at a long receipt. - Hispanolistic/Getty Images
Meanwhile, there's one entirely predictable factor driving grocery prices up: greedflation. This term describes a situation in which businesses use inflation as an excuse to raise prices and increase profits. According to Accountable, a consumer watchdog agency, this practice is common when it comes to food. In 2023, they called out giants like General Mills, which owns brands such as Betty Crocker and Cheerios, as well as Aldi and Kroger, for chasing profits by putting their customers under duress.
Businesses will argue they're not motivated by greed, but by economic realities. For example, food costs are significantly higher on the West Coast for two reasons. The first is a higher cost of living, which increases operational costs across rentals and wages. The second is stricter food safety and environmental guidelines, with compliance costs passed on to customers. The consumer, meanwhile, is forced to find different ways to save money at the grocery store.
"Our shopping list hasn't changed much over the years, but we do feel we're being squeezed in the wallet," one Redditor wrote on a thread about grocery shopping hacks in Hawaii. Members suggested different ways in which to reduce food costs, with the most common being to shop in bulk and freeze ingredients for future use. Another good tip we found is to buy more affordable cuts of beef. After all, if you know what you're doing, you can make a cheap steak taste like $40 with just garlic and rosemary!
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Read the original article on Tasting Table.
Source: “AOL Money”
