Upstream Pressure

The Grocery Gap

The gap between wage growth and food-at-home CPI has been shrinking since ear...

What is the current The Grocery Gap?

GROCERY AFFORDABILITY GAP (AHE YOY MINUS FOOD
0.51 pts ↑ Improving
Grocery wage cushion narrowed to +0.48pp
One year ago
1.56 pts ↓ Worsening
down 1.1 points since Feb 2025

Food prices are rising 0.51 percentage points faster than overall CPI in the latest reading. The Grocery Gap measures this spread between food-at-home inflation and general inflation — when positive, it means grocery costs are outpacing other prices, disproportionately burdening lower-income families who spend a larger share of income on food. Source: BLS (CUSR0000SAF1 minus CPIAUCSL).

Grocery wage cushion narrowed to +0.48pp — down from +1.5pp a year ago as food prices re-accelerate

The gap between wage growth and food-at-home CPI has been shrinking since early 2025, with food prices closing in on earnings.

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Is this happening to you?

Are you spending more on groceries even though you're buying less?

How has The Grocery Gap changed over time?

CSV Chart Card
The Grocery Gap over time
The Grocery Gap, percentage_points
The Grocery Gap
Historical data
Monthly · Computed (BLS Average Hourly Earnings YoY - Food-at-Home CPI YoY)
Period Value YoY Change
Feb 2026 0.51 pts −1.1 pts
Jan 2026 0.48 pts −1.0 pts
Dec 2025 0.43 pts −1.2 pts
Nov 2025 0.95 pts −0.9 pts
Sep 2025 0.73 pts −0.9 pts
Aug 2025 0.78 pts −1.1 pts
Jul 2025 1.07 pts −0.4 pts
Jun 2025 0.86 pts −0.8 pts
May 2025 1.09 pts −0.9 pts
Apr 2025 1.16 pts −0.6 pts
Mar 2025 1.3 pts −0.6 pts
Feb 2025 1.56 pts −0.3 pts

Frequently Asked Questions

What is The Grocery Gap?

It measures the spread between food-at-home CPI inflation and overall CPI inflation. Currently 0.51 percentage points, meaning grocery prices are rising faster than general prices.

Why does the grocery gap matter?

Food is non-discretionary. When food prices rise faster than general inflation, lower-income households — who spend 25-35% of income on food — are disproportionately squeezed.

Where does this data come from?

Computed from BLS series CUSR0000SAF1 (food at home) minus CPIAUCSL (all items).

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Why does The Grocery Gap matter?

The Grocery Gap is one of 91 indicators in the American Distress Index's upstream pressure layer — the signal that predicted the 2008 crisis two years before delinquency data confirmed it.
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