Detroit leads US cities in grocery spending as a percentage of income

A new study by WalletHub reveals that despite cooling inflation rates in the United States, grocery prices remain high, disproportionately affecting residents in cities where food costs consume a large share of household income.

Detroit, Michigan, ranks as the city where residents spend the highest percentage of their median annual household income on groceries, at 4.03%. This is attributed to the city having the lowest median annual household income in the study at $39,938. Cleveland, Ohio, follows in second place at 3.93% due to its low median income of $40,801.

Several factors contribute to sustained food costs, including supply chain disruptions from the pandemic, labor and transportation costs, climate-related production decreases, and geopolitical conflicts in Russia, Ukraine, and the Middle East. As a result, consumer habits are shifting toward discount retailers like Costco, Walmart, and Aldi, as well as a record $282.8 billion in sales for private-label products.