Report: California’s grocery prices are higher than anywhere else in the country (2024)

FAQs

Why Californians pay more for groceries than the rest of the country? ›

Inflation Nation

While California's economy is mostly doing well, that does mean that things generally cost a lot more here. Wages and the cost of living are increasing, which means grocery bills have to do so, too.

What are the average grocery and food costs in California? According to a study by the United States Census Bureau, Californians pay more for their weekly groceries than any other state. The average American family spends around $270 a week on groceries, but Californians spend nearly $298 on a weekly basis.

Since California's new law went into effect to raise the minimum wage of fast-food workers, who are employed by chains of 60 restaurants and more, from $16 to $20 an hour, some fast-food chains have raised their food prices, according to a new study.

1. California

In California, the average weekly grocery spending is $297.72. Cities like Riverside and San Francisco are even higher at $300.50 and $298.44, respectively.

Groceries are exempt from sales tax in California. This includes both unprepared and prepared foods. However, there are a few exceptions to this rule. For example, candy, soft drinks, and prepared foods that are served in restaurants are taxable.

It's not just housing that adds up – health care, taxes, food and transportation all contribute to California's growing cost of living.

A new study from the United States Census Bureau shows that Californians pay more for their weekly groceries than any other state, tacking on to the already costly living expenses that come along with living in the Golden State.

"California has its own blend of gasoline, it has very high taxes, and it has a cap-and-trade program," De Haan said. "All of those factor into what you pay at the pump."

The California Organic Products Act of 2003 establishes stringent requirements concerning the production, labeling, and marketing of organic items. These strict regulations mean that farms and grocery stores face higher costs to comply with state standards.

According to several studies on cost of living, Hawaii is the most expensive U.S. state to live in. Prices are typically double in Hawaii compared to those on the mainland, and the continued rise in inflation is making costs ranging from housing to health care much more expensive.

How expensive is food in California? ›

The analysis found that, on average, U.S. households spend $270.21 per week on groceries, or about $1,080 every month. In the Golden State, however, the average weekly grocery spending is $297.72. That's nearly $30 more than the national average.

Data analytics company Numerator has identified the top grocery retailers by dollar share, and Walmart tops the list for the third year in a row, followed by Kroger, which is losing market share.

The higher housing cost also affects the average grocery cost in California. Californians have to spend roughly $620 per month for groceries, that's almost $100 more than the average grocery cost in Texas. Even basic pantry items such as milk, eggs, or bread can be slightly pricier in California.

The average household in California spends approximately $297 a week on grocery shopping, according to the data released in November. That is almost $30 more than the reported national average. Here's how much California spends based on household size: One person - $176.81.

Low-income households may face different prices for specific food items for three reasons: (1) on average, low-income households may rely less on supermarkets than other households, shopping instead at smaller out- lets that have higher prices, (2) low-income households may be less likely to live in suburban locations ...

The study, which relies on data from Oct. 18, 2023 to Oct. 30, 2023, says that rising costs of living in the areas, paired with increased housing prices, reflect the amount that residents are forced to pay during each visit to the store.