- A WalletHub analysis found Mississippi spends the highest share of its median household income on groceries among US states.
- West Virginia and Arkansas ranked second and third, while New Jersey came in at No. 50 on the list.
- The three states that spend the lowest percentage on groceries also have the highest earnings.
Retail food prices have increased across the US, but Mississippians are arguably feeling it the most at the grocery store.
WalletHub, a personal finance platform, recently released an analysis examining the share of median income residents of US states allocate to groceries, and those in Mississippi, West Virginia, and Arkansas are spending the highest percentages.
The company studied the prices of 26 common grocery items, including meat, dairy, fruits, and cleaning products, across all 50 states. It then combined the costs and compared them with the median household income in each state to identify where residents spend the highest proportion of their income on groceries.
Mississippi ranked No. 1 on the list for highest spending on groceries relative to income, with the cost of groceries reaching 2.64% of median monthly household income. West Virginia ranked No. 2 with 2.57%, and Arkansas ranked No. 3 with 2.49%.
You can hover over the map below to see the percentage of median monthly household income residents spend on groceries by state.
Despite Mississippi ranking highest on the list, the report said that "grocery prices in Mississippi are actually relatively low," with the state having the ninth lowest grocery prices in the US. WalletHub said in its findings that Mississippi is among the 10 least expensive states in 15 of the 26 products measured in the study, including items like margarine and dishwashing detergent.
However, a more significant factor is that Mississippi had the lowest median annual household income in the country, at $52,985 in 2022 dollars, per Census data spanning 2018 through 2022. That was well below the national median of $75,149.
"So even with relatively low grocery prices overall, Mississippians are spending a higher percentage of their income on groceries than people in any other state," WalletHub said.
WalletHub analyst Chip Lupo told Business Insider that the study compared the prices in each state to median annual income because it seemed to be a better indicator on a statewide basis than solely looking at grocery prices. Lupo said that the cost of grocery prices in New Jersey "won't mean anything to someone in West Virginia."
The report said that West Virginia is "around the middle or bottom of the country" for some of its grocery prices, although some products, like eggs and potatoes, tend to be more expensive. Still, West Virginia had the second-lowest median household income in the US, bringing in $55,217 annually.
Similarly, while Arkansas, which spends the third-highest percentage of its median income on groceries, is in the top 10 states with the cheapest groceries in the US, it has the third-lowest median household income, with $56,335 annually.
Meanwhile, New Jersey ranked No. 50 on the list, meaning its residents spend the lowest percentage of their income on groceries, with Maryland and Massachusetts placing right above it. All three states have the highest median annual household incomes in the country and spend between 1.5% and 1.54% of their median monthly household income on groceries.
Lupo suggested that those who want to see their spending go down should buy store-brand versions of products, buy in bulk, and look into reward programs for grocery stores they frequent. You should also budget carefully — and try to stick to it, Lupo said.
"That will keep you from splurging," Lupo said. "And most importantly, from making those impulse buys."
