'Food Prices Are Expected To Keep Rising In 2025' – Ramsey Solutions Explains Why Grocery Prices Are So High, Offers Tips for Saving

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.

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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.

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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%

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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:

• Research and meal planning: Check sales and plan meals around discounted items to avoid impulse buys.
• Use what you have first: Before shopping, take inventory of what's in your pantry and fridge to reduce waste and avoid unnecessary purchases.
• Shop generic brands: Store brands often offer the same quality as name brands at a lower price.
• Shop at discount stores: Stores like Aldi and Trader Joe's offer lower prices than larger chains.
• Eat less meat: Try incorporating more meatless meals, as meat prices remain high.
• Buy in bulk and freeze: Stock up on non-perishables and freeze meat and vegetables for lower prices when available.

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.

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