Retail food price inflation varies across U.S. metro areas
Retail food price inflation varies by locality. In the 10 years from 2012 to 2021, increases in retail food prices ranged from an average of 2.4 percent a year in Honolulu, HI, to 0.9 percent in the Dallas-Fort Worth, TX, area. Retail food at home includes food bought in grocery stores as opposed to restaurants. Differences in transportation costs and retail overhead expenses, such as labor and rent, can explain some of the variation among cities because retailers often pass local cost increases on to consumers in the form of higher prices. Furthermore, differences in consumer preferences among cities for specific foods may help explain variation in inflation rates. For example, a city whose residents strongly prefer foods with less price inflation (such as fresh fruits and vegetables, at 1.3 and 0.8 percent average yearly growth for 2012-21) might experience lower food-at-home price inflation than a city whose residents buy more beef and veal, which increased by an average of 4.2 percent a year in the 10-year period. Across the United States, food-at-home prices increased by an average of 1.4 percent a year over the 10-year period. This chart appears in an Economic Research Service data visualization, Food Price Environment: Interactive Visualization, released May 12, 2022.
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