Moneywise

Mon, Jun 9, 2025, 10:05 AM5 min read

Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.

Soaring food prices have been hurting consumers for years. But things are coming to a head, especially as retailers and consumers grapple with tariff concerns.

Walmart CEO Doug McMillon recently shared at the Economic Club of Chicago that food prices are still elevated — and that consumers are showing signs of "stress behaviors."

• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how

• BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis

• Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10)

“We worry about that,” McMillon said. “You can see that the money runs out before the month is gone.”

McMillon says that shoppers are being more selective in what they buy and are prioritizing value purchases.

“There are lots of income levels in this country — if you’re at the lower end of that scale, you are feeling more frustration and pain because of higher food prices,” he said. “They’ve persisted for years now, and you’re just tired of it."

But what’s the ripple effect behind these price increases?

Food prices away from home were up 3.9% broadly year over year in April, while food prices at home were up 2% annually, according to the Consumer Price Index.

All told, food prices have shot up nearly 25% since 2020. A big reason for the spike is the supply chain issues caused by severe weather and global events. It hasn't helped that several food staples have been in short supply.

In late 2024, a survey by Swiftly found that 70% of American consumers are having difficulty affording groceries.

The broader immigration crackdown could also negatively affect food costs, as it might lead to labor shortages that impact supply. With the potential return of tariffs to drive prices up even more, things could get worse before they get better.

Unfortunately, consumers may be in for another year of soaring grocery prices. But there are steps you can take to reduce the burden.

Planning your week based on what's on sale at your local supermarket is a good idea. Focus on meals that freeze easily — like casseroles and stews. This way, you can whip up a lot of food and have leftovers.

Make sure you're signed up for your supermarket's loyalty program. You may qualify for extra discounts, promotions or digital coupons that save you even more.