Food cost compared to income is highest in 30 years [Video]

Dining out at restaurants and buying groceries has become so expensive that it’s eating up a sizable portion of Americans’ paychecks. 

A U.S. Department of Agriculture report reveals that people spent 11.3% of their income on food in 2022, the highest level in over 30 years. 

The share of disposable income spent on food in 2022 was divided nearly equally between eating at home (5.62%) and dining at restaurants (5.64%).

When COVID-19 restrictions were lifted in 2022, more people started eating out at restaurants, the report noted. 

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And with more consumers continuing to dine out, this contributed to a spike in restaurant prices. According to Bureau of Labor Statistics data, restaurant prices in January 2024 increased to 5.1% compared to 2023.

Fast-food prices were also higher at 5.8% over the past year, with restaurant and food companies attempting to …