Study: Alabamians Spend Among Highest Share of Income on Groceries
Alabama-A new WalletHub study finds that Alabama residents spend the sixth-highest percentage of their median monthly household income on groceries in the nation, highlighting the continued strain of rising food prices on household budgets.
Grocery Spending in Alabama (1=Most Expensive; 25=Avg.):
- Average Cost of Groceries: $120.41
- Average Cost of Groceries as % of Median Monthly Household Income: 2.33%
- 19th – Average Price of Ground Beef
- 5th – Average Price of Potatoes
- 29th – Average Price of Bananas
- 23rd – Average Price of Soft Drinks
The personal-finance company analyzed the cost of 26 commonly purchased grocery items across all 50 states and compared the total cost to each state’s median household income to determine where residents devote the largest share of their earnings to food.
According to the report, the average cost of groceries in Alabama is $120.41, accounting for about 2.33% of the state’s median monthly household income. The state ranked 19th for the average price of ground beef, 5th for potatoes, 29th for bananas, and 23rd for soft drinks.
The findings come as grocery prices have climbed sharply nationwide. The U.S. Department of Agriculture reports food costs have increased by nearly 30% since 2019. Income growth has not kept pace, making groceries less affordable and forcing households to dedicate a larger share of their earnings to basic food needs.
WalletHub analysts noted that states where residents spend the greatest percentage of their income on groceries are not necessarily those with the highest food prices. Instead, lower median incomes in those states mean even moderate grocery costs take up a larger portion of household budgets.
The report also emphasizes the importance of budgeting for essential expenses. Setting aside funds for groceries early in the budgeting process and prioritizing lower-cost staples over luxury food items can help reduce the share of income spent on food.
The full report is available at WalletHub’s website:
https://wallethub.com/edu/states-where-people-spend-the-most-least-on-groceries/144275
