US grocery prices: Sticker shock: How U.S. grocery bills stack up against Mexico, Canada, and China in surprising price reveal

Time of India

2 days ago

United States
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While housing expenses rose during and after the pandemic, food prices went up even higher, as per a report. According to the USDA, from 2020 through 2024, food prices in the United States increased 23.6%, surpassing the 23.0% increase in housing expenses, as per GoBankingRates.However, food inflation has slowed considerably since then. Having peaked at 11.4% in 2022, it fell to 5.0% in 2023 and further to merely 1.2% in 2024, reported GoBankingRates report.But at the grocery store, Americans are spending more than many of their international neighbours, as per the report. Here's a comparison of US grocery affordability with Canada, Mexico, and China based on statistics from Numbeo, the USDA, and experts GoBankingRates spoke to.ALSO READ: Mark Cuban predicts painful red rural recession — here are 4 states he says should brace for economic fallout Grocery Cost Index: 71.75, as per Numbeo.Proportion of Average Consumer Expenditure: 6.8%, as per USDA data processed by Our World in Data.According to GobankingRates report, in absolute terms, groceries are more expensive in the United States than in Canada, Mexico, or China. But as a percentage of income, Americans are spending less on food than citizens of those nations , which is only 6.8% of the American's budget, as per the report.Consumer finance expert, Aaron Razon explained that, 'The U.S. imports groceries from other countries like Mexico and Canada, for year-round availability,' quoted GoBankingRates. Razon also mentioned that 'Add in the high cost of local labor and the impact of trade policies and tariffs on grocery prices, it's really no surprise that groceries would cost more in the U.S. than it does in these other countries,' as quoted in the report.Grocery Cost Index: 65.35Percentage of Average Consumer Expenditure: 9.7%According to a Numbeo report, groceries in Canada cost 5.8% less when they are priced in the same currency. However, the median Canadian also earns lesser than the median American, so an average Canadian household spends 9.7% of its budget on groceries, reported GobankingRates report.Grocery Cost Index: 38.22Share of Average Consumer Spending: 25.7%In Mexico, groceries are 42.3% cheaper in absolute terms, but even incomes are lower as well, as per Numbeo. While, Mexican households also have limited access to imported foods compared to Americans, and other than big cities, most Mexican families mainly eat locally grown food, reported GoBankingRates.Accountant Shalini Dharna said, 'In general, consumers in Mexico tend to have less disposable income than in the U.S. and Canada, so in relative terms groceries are more affordable in the U.S. than in Mexico,' quoted the GoBankingRates report.Grocery Cost Index: 34.18Percentage of Average Consumer Expenditure: 21.2%Groceries are even cheaper in China, which is 53.1% cheaper than in the United States, as per the report. However, food takes up a high portion of the average Chinese household's budget, especially for low-wage rural workers providing cheap labour, reported GoBankingRates.Razon said, 'China's large-scale agricultural production and low labor costs put them at an advantage when it comes to affordability,' as quoted in the report.Yes. After peaking at 11.4% in 2022, it dropped to 5.0% in 2023 and then to just 1.2% in 2024, as per GoBankingRates report.Groceries in Canada cost about 5.8% less than in the US, but Canadians typically earn less, so they end up spending 9.7% of their income on food, as per GobankingRates report.