2/24/2025
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Breaking Down Grocery Expenses

By
Bethany H.

The Real Cost of Groceries: Where Does Your State Rank?

We all have to buy groceries, but did you know that the cost of everyday items can be surprisingly different depending on where you live? We took a closer look at food prices across the country to find the 10 states where groceries are cheapest -- and the 10 where they're most expensive.

Top 5 Cheapest States:

Kansas – Known for more than just sunflowers, Kansas takes the top spot for affordable grocery prices. Its central location and strong agricultural industry help keep transportation costs low, which allows stores to pass those savings onto the customer through lower prices on everyday agricultural produce. (Source: USDA Food Price Report, 2024)

Mississippi – Southern charm meets budget-friendly groceries. Low labor costs and high local production contribute to its affordability, enabling retailers to offer competitive prices on household essentials like milk and bread. (Source: Bureau of Economic Analysis, 2024)

Idaho – Not just potatoes! Idahoans pay less for essentials across the board. The state's agricultural strength, especially in dairy, keeps prices in check, ensuring a stable supply of key products at consistently lower prices for shoppers. (Source: Consumer Price Index Data, 2024)

Oklahoma – Low fuel costs and a strong agricultural base contribute to consistently low grocery prices. The state's proximity to major agricultural regions means lower distribution expenses, allowing retailers to offer lower prices to consumers. (Source: USDA Food Price Report, 2024)

Arkansas – With a high percentage of locally produced goods, Arkansas benefits from reduced shipping costs and keeps grocery prices competitive. The state's strong agricultural infrastructure ensures that many essential products are grown or produced locally, minimizing transport costs and reducing retail prices. (Source: Bureau of Economic Analysis, 2024)

  • 🥛 Cheapest State for Milk: As of January 2025, Texas has the cheapest milk at about $3.90 per gallon, thanks to its strong dairy industry and lower transportation costs.
  • 🥚 Cheapest State for Eggs: In January 2025, Michigan takes the lead with a dozen eggs around $4.15, helped by local production and fewer supply chain issues.
  • 🍞 Cheapest State for Bread: As of February 2025, Texas offers bread for about $2.50 a loaf, thanks to its low cost of living and local wheat farms.

Top 5 Most Expensive States:

Hawaii – Island living comes at a cost, especially when eggs cost 50% more than the mainland. The need to import most goods across the Pacific significantly raises prices, as transportation expenses get passed on to consumers. (Source: Hawaii Department of Business, Economic Development & Tourism, 2024)

Alaska – Remote locations mean higher transportation costs—and higher prices. Long distances and limited infrastructure make basic items more expensive because freight costs are reflected in retail prices. (Source: USDA Food Price Report, 2024)

California – Sunshine and sticker shock: groceries here are some of the priciest in the nation. High labor costs, taxes, and demand all contribute to California's expensive grocery market, where consumers bear the brunt of operational expenses. (Source: California Department of Food and Agriculture, 2024)

New York – High population density and elevated distribution costs push grocery prices above the national average. The sheer number of residents increases demand and drive up prices, while distribution logistics in a crowded urban environment add extra costs that retailers pass on to consumers. (Source: Consumer Price Index Data, 2024)

Connecticut – Higher wages and limited local production contribute to consistently expensive grocery bills. The state's reliance on out-of-state suppliers leads to higher transportation costs, and businesses adjust prices to accommodate higher labor expenses. (Source: Bureau of Economic Analysis, 2024)

  • 🥛 Most Expensive State for Milk: As of February 2025, Hawaii has the priciest milk at $5.98 per gallon, mostly due to shipping costs to the islands.
  • 🥚 Most Expensive State for Eggs: In January 2025, Hawaii also had the highest egg prices, with a dozen costing about $9.73 -- way above the national average.
  • 🍞 Most Expensive State for Bread: As of February 2025, Hawaii leads in bread prices too, with a loaf averaging $5.62, again due to import costs.

Why Do Prices Vary So Much?

Transportation costs, local production, and even state taxes play a big role. For instance, states like Kansas benefit from being close to agricultural hubs, which reduces distribution costs and keeps grocery prices lower. States like Hawaii and Alaska have to import many essentials, raising prices.

How to Save No Matter Where You Live:

No matter your state, BrickSeek can help you track down great deals on all your groceries! Check out our dedicated Household Essential Deals section to find the best prices near you and save more on every trip to the store!

Bethany H.

Content Director at BrickSeek
Check out more articles by 
Bethany H.

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