If your grocery bill keeps climbing, you’re not imagining things. The Consumer Price Index shows that food prices increased 2.5% from December 2023 to December 2024, and experts say they’ll keep rising in 2025. While the increase may not be as steep, many shoppers still feel the pinch. Ramsey Solutions breaks down why prices remain high and shares practical tips to help stretch your grocery budget.

Don't Miss:

• If You're Age 35, 50, or 60: Here’s How Much You Should Have Saved Vs. Invested By Now
• How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.

Why Are Grocery Prices Going Up?

Several economic, environmental and global factors are driving food costs higher. Here are some of the biggest reasons:

Bird flu and egg prices: The bird flu outbreak that started in 2022 still affects poultry farms across the U.S. With over 121 million birds impacted, the supply of eggs and poultry has dropped, pushing prices up. In 2024 alone, egg prices jumped 36.8%.

Rising production costs: Farmers pay more for seeds, fertilizer, feed and equipment. These costs get passed down the supply chain, making everything from fresh produce to meat more expensive.

Extreme weather events: Droughts, wildfires and hurricanes have hurt crop yields. Hurricanes Helene and Milton, for example, hit Florida's citrus farms hard, driving up the price of orange juice and other citrus products.

Labor shortages: Fewer agriculture and food production workers mean higher labor costs, making food production more expensive. When supply can’t keep up with demand, prices rise.

Supply chain issues: The U.S. imports about 15% of its food. Trade disputes, rising shipping costs and global conflicts have made it more expensive to get items like coffee, cocoa and some fruits onto store shelves.

Trending: ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.26/share with a $1000 minimum.

What Foods Have Been Hit the Hardest?

The Consumer Price Index shows these items as having some of the biggest price increases from December 2023 to December 2024:

• Eggs: +36.8%
• Frozen juices and drinks: +12.5%
• Condiments: +12.4%
• Dried beans, peas and lentils: +5.5%
• Beef and veal: +4.9%
• Fresh vegetables: +4%
• Coffee: +3.8%
• Candy and chewing gum: +3.7%

See Also: Many are surprised by Mark Cuban's advice for lotto winners: Cash or annuity?

How Can You Save on Groceries?

While rising food prices may seem unavoidable, Ramsey Solutions offered a few tips to help reduce your grocery bill:

Food prices are expected to rise by another 2.2% in 2025, but Ramsey Solutions notes that it can take years for the contributing factors to affect your grocery budget. By being strategic about your grocery shopping, you can keep your food budget under control. Small changes in purchasing habits can add up to significant savings over time.

Read Next: