Food Costs in the USA: What to Budget for in 2026

People planning a move to the United States tend to underestimate how much of their household budget goes toward food. In 2023, the average American family spent roughly $9,986 on food over the course of the year — equivalent to 12.8% of total expenditures, according to the Bureau of Labor Statistics Consumer Expenditure Survey. That level remains elevated in 2026 and demands careful planning from anyone arriving in the country.

More telling than the raw number is how that spending breaks down. The survey shows that 58.5% of the food budget went to meals eaten outside the home — the highest share recorded since the 1930s. Habits have shifted for good: the average American now incorporates restaurants, fast-food chains, delivery apps, and cafeterias into daily life, and newly arrived immigrants tend to follow the same pattern due to time pressure, long commutes, or not yet having a fully equipped kitchen.

The consequence is straightforward: those who maintain the Brazilian habit of cooking at home can reduce that expense significantly, while those who lean into local convenience will see their monthly food bill climb fast.

How Prices Have Changed Since 2023

The period between 2021 and 2023 was marked by the steepest inflationary surge in four decades, with the overall index reaching 9% in 2022. Food inflation followed the same trajectory, and even with the slowdown recorded in 2024 and 2025, prices have not returned to pre-pandemic levels.

The Food Price Outlook from the USDA Economic Research Service projects moderate consumer price increases for 2026, still above general inflation in some categories. Beef, eggs, dairy, and imported goods — coffee, olive oil, tropical fruits — remain under pressure from production costs, tariffs, and weather.

Where the Squeeze Is Sharpest

• Beef: U.S. cattle herds at historic lows are keeping burger and steak prices persistently high
• Eggs: successive avian flu outbreaks have cut supply and driven up the average price per dozen
• Dairy and cheese: higher feed and energy costs passed on to consumers
• Imported items: arabica coffee, olive oil, and cocoa have posted significant price increases over the past two years

Why Eating Out Weighs So Heavily

The American lifestyle favors ready-made food. Long work hours, car-dependent commutes, cities built around the automobile, and small kitchens in urban apartments all create an environment where a quick meal at a fast-casual chain or through a delivery app becomes the default.

The cost of that convenience has risen faster than grocery prices over the past five years. Fast-casual meals that ran $10 in 2019 now regularly exceed $15. App-based orders also include delivery fees, suggested tips, and service charges that can push the final ticket 30% to 40% above the in-store menu price.

Money-Saving Strategies That Work

Anyone arriving in the U.S. with a goal of keeping the budget in check needs to understand the local grocery retail landscape. The chains with the best value vary by region, but some are present across most of the country.

Discount Grocery Stores

• Aldi: aggressive pricing on staples and a consistently solid private-label line
• Walmart Supercenter: the best option in small cities and suburbs, with the competitive Great Value brand
• Trader Joe’s: private-label products with a strong price-to-quality ratio, especially in frozen foods and snacks
• Grocery Outlet: a regional chain that operates on near-expiration products and manufacturer overstock

Bulk Shopping

Warehouse clubs like Costco and Sam’s Club require annual memberships ranging from $50 to $130, but they pay off for households of more than two people. Packaged meats, cleaning products, toilet paper, and olive oil come at a meaningful discount compared with conventional supermarkets.

Loyalty Programs and Digital Coupons

Kroger, Safeway, Albertsons, Target, and Publix all run digital discount programs that add up to real savings over the course of a month. The American coupon model has evolved into personalized app-based offers; ignoring that layer means paying full price while neighbors pay 20% to 30% less.

What to Factor Into Your Financial Planning

For anyone moving to the United States, three variables affect monthly food spending more than anything else: the state of residence, the size of the city, and how often you eat outside the home.

• States such as California, New York, Massachusetts, and Hawaii have grocery and restaurant prices 15% to 30% above the national average
• Smaller cities in Texas, Tennessee, Georgia, and North Carolina offer costs near or below average
• Meals outside the home are the highest-leverage line item: cutting from five to two times a week can reduce monthly spending by $400 or more

American personal finance guidelines suggest setting aside 10% to 15% of net income for food as a healthy benchmark. Immigrant families who cook at home regularly, plan their grocery trips, and use loyalty programs can operate near the lower end of that range — even in expensive states.

The Bottom Line for Those Just Arriving

Food costs in the United States are high, but manageable. The difference between a family spending $800 and one spending $1,500 a month often has nothing to do with income — it comes down to choices: where to shop, how often to eat out, whether to use discount programs, whether to cook or rely on delivery. Immigrants who prepare for this reality before the move arrive with a real advantage and avoid the financial stress that is common in the first six months.

Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.