New data says MS has some of cheapest grocery prices in US. Why is food still unaffordable?
- Mississippi residents spend a higher percentage of their income on groceries than any other state, despite having some of the lowest grocery costs.
- This high percentage (10.57%) is due to the state's low median household income.
- Grocery prices in Mississippi have increased by 5.7% compared to last year.
- Nationally, grocery prices are affected by various factors, including inflation, drought, and disease outbreaks.
Spending more on groceries? Prices have been climbing in Mississippi compared to last year, and new data shows that residents spend more of their budgets on food costs than in any other U.S. state. But we also have some of the cheapest food costs when compared to other states.
GOBankingRates analyzed the average cost of living index and found the average grocery costs for all 50 states, along with the one-year change in actual dollars and as a percentage. They then calculated what percentage of the median household income is used on food costs. The results were ranked based on the percentage of total income grocery shopping eats up. More money coming in usually means the average grocery bill takes a smaller bite out of your wallet.
The issue is complicated. Beef prices hit a record high this summer. Egg prices finally fell. And additional factors like inflation and pending tariffs from the Trump administration could keep affecting your money.
Could you have to pay more for groceries? Here's what we know.
How much does Mississippi pay for groceries?
According to GOBankingRates, in actual dollars, Mississippi ranks 5th for least expensive groceries in the country with a $5,805 annual average cost for food at home.
But the lower cost of living for the state and some of the lowest pay in the nation means that it takes a bigger bite out of our wallets. The Magnolia State has the lowest average income in the nation at $54,915.
Mississippi residents, on average, spent about 10.57% of their income on groceries, which is the highest percentage in the U.S.
And prices are climbing. State-level data showed a $313 jump, or a 5.7% increase, from the 2024 average of $5,492.
Which states spend more of their money on food?
Four other Southern states followed just behind Mississippi for states where residents use more of their budgets to cover food costs: West Virginia (10.11%), Arkansas (9.79%), Louisiana (9.75%) and Alabama (9.52%).
By comparison, the states where food takes a smaller part of the budget all have average incomes over $90,000. They include: Massachusetts (6.13%), New Jersey (6.15%), New Hampshire (6.25%), Maryland (6.26%) and Utah (6.47%).
Which states have the most expensive groceries?
According to GOBankingRates, these states have the highest average grocery prices in 2025.
- Hawaii: $8,147
- Alaska: $7,887
- California: $6,586
- Washington: $6,549
- Vermont: $6,440
- Maryland: $6,362
- Oregon: $6,362
- Florida: $6,362
- Montana: $6,325
- Idaho: $6,319
Which states have the cheapest groceries?
According to GOBankingRates, these states have the lowest average grocery costs in 2025.
- Arkansas: $5,756
- Iowa: $5,793
- Oklahoma: $5,793
- Texas: $5,799
- Mississippi: $5,805
- Kansas: $5,841
- Missouri: $5,853
- Tennessee: $5,853
- Louisiana: $5,853
- West Virginia: $5,853
Is inflation dead? Are all costs going up?
FactCheck.org is a nonpartisan part of the Annenberg Public Policy Center of the University of Pennsylvania. The group recently took on claims from President Donald Trump and Democratic House Minority Leader Hakeem Jeffries that painted very different views of the economy.
On the same day, July 14, Trump reportedly said "inflation is dead" while Jeffries said costs are going up and things aren't getting better under this administration.
Fact checkers found the truth is somewhere in the middle of those statements.
The Consumer Price Index spiked during part of former President Joe Biden's term to 9.1%, mostly because of economic problems caused by the COVID-19 pandemic. It had, however, fallen under 3% for the six months before Trump took office in January, and it was 3% for the 12 months that ended in January.
However, the CPI showed that inflation was 2.7% for the 12 months that ended in June and was up 0.8% from January to June. Core inflation doesn't include food or energy costs, and it increased 2.9% over June 2024.
They also found, using data from the Bureau of Labor Statistics and the Energy Information Administration, that all prices aren't increasing under Trump.
FactCheck determined that these June numbers were up the most since January:
- Beef: 11.1%
- Household energy: 5.5%
- Appliances: 4%
- Toys: 2.4%
- Medical care: 1.7%
- Furniture and bedding: 1.6%
- Vehicle insurance: 0.9%
- Groceries: 0.6%
- Gas: 0.5%
These areas, however, saw a decrease from January, according to the data:
- Eggs: 23.8%
- Airfare: 14.1%
- Energy: 1.6%
- Footwear: 0.4%
- Vehicles (new and used): 0.9%
Beef, egg prices are tied to drought, disease
Some grocery prices have been fluctuating due to factors such as drought or disease, which have left fewer animals or crops available.
Beef prices recently hit a peak price per pound.
Drought conditions in recent years drove up feed prices, leading more cows to be sent to slaughter. A U.S. Department of Agriculture report from January said the national count of beef cows it the lowest since 1961. The country also halted imports from Mexico this year to halt the spread of New World Screwworm.
Shoppers might see relief as the weather cools, but don't expect a massive drop.
“If we’re thinking about seeing prices lower than we saw last year or going back to prices 5 or 6 years ago, that’s not very likely,” said David Anderson, a professor and extension economist for livestock and food product marketing at Texas A&M, told Paste BN. “But I do think there is a chance for some relief from this (summer) spike in prices.”
Egg prices have seen a sharp decline, starting in the spring after a peak of $6.23 per dozen in March. As of an Aug. 1 report from the USDA, egg prices are down to $2.92 per dozen.
Bird flu led to the culling of millions of commercial flocks. According to the USDA, 44 outbreaks in 10 states led to the loss of 36.3 million birds total.
No new outbreaks had been reported in the last week.
Contributing: Bailey Schulz
Bonnie Bolden is the Deep South Connect reporter for Mississippi with Gannett/USA Today. Email her at bbolden@gannett.com.