Food Prices and Spending

Retail food prices partially reflect farm-level commodity prices, but other costs of bringing food to the market (such as processing and retailing) have a greater role in determining prices on supermarket shelves and restaurant menus. Monthly price swings in grocery stores for individual food categories, as measured by the Consumer Price Index (CPI), tend to smooth out into modest yearly increases for food in general. In 2022, U.S. consumers, businesses, and government entities spent $2.39 trillion on food and beverages in grocery stores and at other retailers as well as on away-from-home meals and snacks.