Americans are worried about grocery prices again, and they're making changes

CNN

08-08-2025

President Donald Trump campaigned on lowering grocery prices during the 2024 race and pledged that Americans are 'going to be affording their groceries very soon.' But grocery prices have continued to tick higher after the election, and Americans are starting to change their shopping behavior as they grow more concerned about the economy.
More than half of Americans say they are stressed about food costs, according to poll from The Associated Press-NORC Center for Public Affairs Research released this week. Fifty-three percent of people said grocery costs were a 'major' stress, while 33% said they were a 'minor' stress, according to the poll. Only 14% said groceries were not a source of stress.
This was the first AP poll asking Americans about their stress over grocery prices, but other surveys in recent years have shown that Americans are frustrated with grocery costs. The poll shows that Americans remain anxious over the high cost of food and the state of the economy, despite slowing inflation on groceries.
They're not just complaining to pollsters: Customers are making significant changes to what they buy at the grocery store and how they buy it.
The rate of inflation on groceries has come down significantly since a 9.4% peak in 2022, driven by supply chain bottlenecks. Grocery prices increased 2.4% for the last 12 months ending in June, according to the latest consumer price index reading.
But that doesn't mean that grocery prices have come down. In some cases, such as eggs, beef, orange juice and other items, prices have even accelerated due to supply changes or extreme weather. There are signs that Trump's tariffs are impacting prices on imported fruits, canned goods, coffee and other products.
The poll results reflect unmet expectations over Trump's pledges on grocery prices and consumer uncertainty around the direction of the economy, said David Ortega, a food economist at Michigan State University.
Consumers pay close attention to store prices and grocery bills shape their overall perceptions of the economy. 'We're coming out of an inflationary period. People's budgets are strained. Everybody sees the price of food,' Ortega said.
The broader economy appears to be impacting consumer sentiment around groceries. Consumer confidence has wobbled in recent months over the Trump administration's trade policies. Recent reports on jobs and consumer spending also showed the economy may be more fragile than previously believed, and Trump's trade policy is playing a big part.
'This is an environment with tremendous uncertainty around prices because of administration's tariff and trade policy,' Ortega said.
Since the beginning of the year, Americans have fretted over the possibility of higher inflation because of Trump's trade war. But inflation has remained somewhat tame, with only a few categories seeing prices pick up. That's because some businesses have chosen to absorb higher costs, and many are still stocked up with inventory they front-loaded in the beginning of the year, economists say.
Economists say it may just be a matter of time until inflation accelerates faster as inventories dry up and businesses feel the sting from tariffs. American businesses imported significantly less in June as higher tariffs kicked in, making it more expensive for them to buy foreign-produced goods, the Census Bureau reported Tuesday.
Companies say consumers are strapped and adjusting their shopping patterns. They're buying smaller sizes, using coupons and skipping discretionary items, purchasing only the essentials. They're also eating more meals at home.
Economists say these changes are a troubling sign and part of an economic slowdown that is impacting the job market and companies' growth plans.
'Customers continue to spend cautiously in an uncertain economic environment,' Kroger interim CEO Ron Sargent said in June. 'Both in high- and low-income levels, they're navigating a significant uncertainty.'
Kroger is stepping up promotions and expanding its store brands, which are typically cheaper than name brands, to draw shoppers.
Mondelez, the owner of Oreo and Chips Ahoy, said consumers were buying fewer snacks, especially biscuits. The company's sales in North America dropped 3.5% last quarter.
'There's a lot of consumer anxiety' and 'frustration' with inflation, said CEO Dirk van De Put
CNN's Bryan Mena contributed to this article.