Affordable food remains a key issue for many households.
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In 2025, nearly 1 in 5 adults (nearly 20%) between the ages of 18 and 64 paid for groceries with savings, and nearly 1 in 20 (more than 5%) purchased groceries with cash from a paycheck advance loan.
These are two of the findings of a study by the Urban Institute, a Washington, D.C.-based nonpartisan think tank that researches economic and social policy.
The 2025 Happiness and Basic Needs Survey also found that while nearly 35% of adults ages 18 to 64 who paid for groceries with a credit card paid the bill in full when it was due, more than 19% paid less than their balance and nearly 9% consistently missed the minimum payment. In contrast to 2023, about 7% did not pay the minimum payment.
“Groceries are one of the largest household budget items for families,” the study says, noting that food costs have increased by about 32% over the past five years. “This means that families today face continued price increases when they go to the grocery store, and food affordability remains a key concern for many.”
Research method
The Urban Institute conducts an annual survey on well-being and basic needs. More than 7,500 adults aged 18 to 64 participated from 2017 to 2024. In 2025, the sample size was expanded to include 2,500 adults aged 65 and older, for a total of 10,000 people.
New statistics show food costs are rising
New data from the Bureau of Labor Statistics shows that food costs have increased over the past year.
Eating out costs rose 2.7% in the 12 months to June, according to the July 14 report.
During the same period:
- Fruit and vegetable prices rose by 5.3%
- Prices of non-alcoholic drinks rose by 2.9%
- Meat, poultry, fish and egg prices rose 2.6%.
- Prices of cereals and bakery products rose by 2.4%.
- Dairy products and related product costs increased by 0.4%.
Previous research highlights food affordability issues
Another survey conducted in May found that rising grocery and food prices are the number one cause of financial stress for Americans. The study, conducted by Global Strategy Group on behalf of the Kitchen Table Project, surveyed 1,100 people.
Their response showed widespread economic pain across party lines and bipartisan support for government intervention to make it more affordable.
Reporter Marcia Greenwood covers grocery business and consumer-focused grocery news, retail developments, store openings and closings. Send your story tips to mgreenwo@rocheste.gannett.com. X Follow her at @MarciaGreenwood.
