The Cost Of Groceries The Year You Were Born Will Have You Wishing You Didn’t Look
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Over the past few years, the cost of food has been on a steady climb upward. Rising grocery prices are influenced by inflation, economic shifts, and changing consumer habits. Understanding these changes helps us appreciate how our spending on groceries has evolved and puts today’s seemingly high prices in perspective.
When we talk about rising grocery prices, we’re really talking about how inflation affects the costs of everyday items. The U.S. Bureau of Labor Statistics began tracking the Consumer Price Index (CPI) in 1947. This survey produces monthly data on the average change in prices paid by consumers for food purchased at grocery stores and for food prepared at home.
According to the U.S. Bureau of Labor Statistics, prices for food at home are 1,082.39% higher in 2024 vs. 1947, and the average annual inflation rate from 1947 to 2024 for food has been 3.26% per year. This is slightly lower than the overall inflation rate of 3.49% for the same period, but it still represents a significant increase in the cost of groceries. This means that if you spent $20 on groceries in 1947, you would need to have $236.48 today to buy the same amount of food.
The rise in grocery prices isn’t just about numbers; it affects our daily lives and household budgets. It’s a reminder of how economic factors, policy changes, and global events can ripple through our shopping carts. From post-war stability to the economic challenges of recent decades, the journey of grocery prices shows us how much things have changed—and why.
1930s
The Great Depression started in 1929, and prices fell significantly as fewer people were able to afford essentials like milk and eggs. By the mid-’30s, unemployment reached about 20%. During this period, farmers organized “milk strikes” that led to government intervention to increase milk prices. In 1935, $1 would be equivalent to approximately $18.55 today.
Milk: $0.26 per gallon
Eggs: $0.15 per dozen
Bread: $0.12 per loaf
$20 in 1930 is equivalent to approximately $419.83 today
1940s
The U.S. economy experienced a boost due to World War II, and families used ration books and food stamps to purchase everyday items like sugar and meat. The end of wartime food rationing led to a rise in food prices and a time of economic prosperity.
Milk: $0.52 per gallon
Eggs: $0.33 per dozen
Bread: $0.20 per loaf
$20 in 1940 is equivalent to approximately $548.09 today
1950s
In the 1950s, supermarkets began to take off as the primary way for Americans to buy their groceries, as opposed to smaller specialty stores. Although supermarkets were first introduced in the ‘30s, their growth was stunted by the Great Depression and World War II. But the post-war economic boom brought a wave of changes that propelled supermarkets into the mainstream, such as mass migration to the suburbs and postwar economic prosperity that increased disposable income.
Milk: $0.83 per gallon
Eggs: $0.60 per dozen
Bread: $0.30 per loaf
$20 in 1950 is equivalent to $224.20 today
1960s
The ‘60s saw a shift in American culinary interests, partly due to the influence of Julia Child’s Mastering The Art of French Cooking, which was published in 1961. The book sparked a nationwide fascination with French cuisine and encouraged many Americans to explore more sophisticated cooking techniques. While this newfound interest marked a retreat from some of the more processed foods that were popular in the ‘50s, these products were still very much a part of the grocery landscape. Notably, SpaghettiOs and Cool Whip were both introduced in 1965 and became staples in many American households. In 1967, the first Trader Joe’s opened in Pasadena, California.
Milk: $1.00 per gallon
Eggs: $0.57 per dozen
Bread: $0.45 per loaf
$20 in 1960 is equivalent to $194.02 today
1970s
This decade was characterized by economic volatility and price surges, particularly due to a wage and price freeze imposed by President Richard Nixon during his re-election campaign. By 1973, inflation had surged to 20%, leading to widespread economic strain and protests, including a meat boycott.
Milk: $1.32 per gallon
Eggs: $0.60 per dozen
Bread: $0.70 per loaf
$20 in 1970 is equivalent to $153.05 today
1980s
The ‘80s brought a major shift in food retail, driven by changing consumer habits and the rise of new types of stores. With more women joining the workforce and a growing emphasis on convenience, traditional grocery stores faced increased competition from value-packed warehouse clubs and all-in-one superstores. Retailers like Kmart and Walmart entered the food market, intensifying price wars and introducing tactics like double couponing.
Milk: $2.18 per gallon
Eggs: $0.83 per dozen
Bread: $0.50 per loaf
$20 in 1980 is equivalent to $69.15 today
1990s
The ‘90s were a decade of culinary and technological innovation. In 1992, the invention of self-service checkout terminals streamlined checkout with a single clerk overseeing multiple registers. The Food Pyramid, a federal recommendation for balanced eating, promoted a base of whole grains and two-to-three dairy products a day, and became a staple of nutritional guidance. This aligned with the release of the iconic “Got Milk?” ad campaign of the mid-'90s. Meanwhile, home cooks also embraced bread-making, leading to a 320% increase in bread machine sales from 1993 to 1997.
Milk: $2.50 per gallon
Eggs: $0.92 per dozen
Bread: $0.89 per loaf
$20 in 1990 is equivalent to $46.18 today
2000s
In 2002, the Department of Agriculture set the final standards for organic food and introduced the USDA Organic seal, making it easier for consumers to identify truly organic products. However, this decade also saw significant labor unrest. According to CNN, about 70,000 unionized grocery store workers in Southern California went on strike in October 2003, which became the largest and longest supermarket strike in U.S. history, affecting 850 stores across three major grocery chains.
Milk: $2.78 per gallon
Eggs: $0.96 per dozen
Bread: $0.92 per loaf
$20 in 2000 is equivalent to $36.40 today
2010s
The 2010s brought significant shifts in the grocery landscape driven by economic changes, technological advancements, and evolving consumer preferences. The world food price index spiked by 45% in 2008, leading to noticeable increases in grocery prices, with eggs rising over 30%, dairy up 12%, and baked goods climbing by 9%. This period also saw the rise of kitchen gadgets like the Instant Pot, which sold 10,000 units in 2012. Additionally, meal kits began transforming home dining, offering pre-packaged ingredients and recipes delivered straight to consumers’ doors. Companies like Blue Apron and HelloFresh, both established in the early 2010, contributed to this trend.
Milk: $3.26 per gallon
Eggs: $1.66 per dozen
Bread: $1.37 per loaf
$20 in 2010 is equivalent to $28.31 today
2020s
Dramatic shifts in grocery prices this decade have been largely driven by the COVID-19 pandemic. According to the U.S. Department of Agriculture, the cost of food at home surged 25% from 2019 to 2023, primarily due to pandemic-related supply chain disruptions and shifts in consumer behavior. Global lockdowns and restrictions led to temporary shortages and price volatility, while increased home cooking and bulk-buying also played a role. In 2022, chicken and egg prices escalated due to the avian flu outbreak.
Milk: $3.96 per gallon
Eggs: $2.72 per dozen
Bread: $1.97 per loaf
$20 in 2024 is equivalent to $20 in today’s dollars
Curious what grocery shopping was like the year you were born? Here's a complete list showing how the purchasing power of $20 for food at home has changed from 1947 (when the official U.S. data begins) to 2024.
1947: $20.00
1948: $21.67
1949: $20.82
1950: $21.10
1951: $23.46
1952: $23.89
1953: $23.44
1954: $23.32
1955: $22.84
1956: $22.97
1957: $23.72
1958: $24.75
1959: $24.16
1960: $24.38
1961: $24.58
1962: $24.76
1963: $25.07
1964: $25.36
1965: $25.94
1966: $27.28
1967: $27.18
1968: $28.06
1969: $29.43
1970: $30.90
1971: $31.65
1972: $33.06
1973: $38.45
1974: $44.16
1975: $47.80
1976: $48.81
1977: $51.71
1978: $57.15
1979: $63.33
1980: $68.40
1981: $73.39
1982: $75.92
1983: $76.73
1984: $79.57
1985: $80.71
1986: $83.02
1987: $86.60
1988: $90.22
1989: $96.14
1990: $102.42
1991: $105.14
1992: $105.91
1993: $108.41
1994: $111.53
1995: $115.14
1996: $119.43
1997: $122.41
1998: $124.72
1999: $127.10
2000: $129.95
2001: $134.19
2002: $135.93
2003: $138.86
2004: $144.11
2005: $146.89
2006: $149.48
2007: $155.77
2008: $165.74
2009: $166.51
2010: $167.07
2011: $175.09
2012: $179.40
2013: $181.02
2014: $185.35
2015: $187.51
2016: $185.05
2017: $184.68
2018: $185.51
2019: $187.14
2020: $193.69
2021: $200.39
2022: $223.27
2023: $234.48
2024: $236.48* (not finalized)
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