What’s really happening to grocery prices right now

Grocery retailers would like to make an announcement: They’re listening to customers and lowering their prices. The news that Target plans to cut prices on about 5,000 everyday items — things like bread, milk, and diapers — made an especially big splash last week. But the big-box retailer wasn’t alone. In early May, grocery chain Aldi said it would cut prices on over 250 items. Walmart has noted in recent earnings calls that it’s offering more discounts as well as lower prices in general on certain grocery items. (Retailers outside of the grocery business too, have made it known that they’ll be charging slightly less for their goods, including Ikea and Michaels.)

These announcements might have you believing that consumers will finally stop wincing in the checkout line. Consumer prices have gone up about 19 percent since 2021, but grocery prices have jumped by about 25 percent. While inflation, which measures the rate of price changes, is around 3.4 percent right now, way down from the peak of 9.1 percent we saw in June 2022, that hasn’t meant food prices (in most cases) have gone back down. Now, a flurry of headlines is heralding these price cuts as proof that companies are finally relenting to consumer fatigue with inflation prices. Relief is in sight.