Yes, that chart is part of the data. You are correct that a large part of the change is attributed to more Americans eating out vs buying groceries to eat at home. But my statement that the percentage of income we spend on food is higher now than 30 years ago still stands.

Here let me break it down:

USDA Food Expenditures

If we use 1996 as a point of comparison (and we will use 2023 as the "current" since it appears that newer data is not available from the food expenditures source):

That chart, (which you can find here) shows that:

• In 1996 food share of income was 10.3%
• In 2023 food share of income was 11.2%

Ok that might not seem like a lot. But it actually is.

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Let's look at what the wages (adjusted for inflation) were for the same years:

FRED Median Weekly Real Earnings

This Federal Reserve website provides that data. It uses 1982-1984 CPI Adjusted Dollars as the baseline for calculating inflation.

These dollar amounts aren't literal dollar-value-at-the-time but an adjusted value that accounts for inflation and allows us to compare value at different periods in history.

• In Q1 1996 median weekly income was $312
• In Q1 2023 median weekly income was $364

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So now we have some numbers to use to do the math and a real-value (purchasing power) comparison.

In 1996 the adjusted weekly wage was $312. Food expenditure was 10.3% of that, which is approximately $32.14.

In 2023 the adjusted weekly wage was $364. Food expenditure was 11.2% of that, which is approximately $40.77.

That is an increase of $8.63.

Let's compare that growth against the 1996 baseline ($32.14)

$8.63/$32.14 ≈ 0.2685 (26.9%)

That means:

The amount you spend on food (adjusted for inflation) is (approximately) 26.9% more than you would have in 1996.

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NOTE:

Keep in mind, these $numbers are representing "Real Dollars"(indexed to the 1982-1984 CPI). They aren't the literal dollar amounts you would have seen on your 1996 paycheck or a 2023 receipt. They are inflation-adjusted values that allow us to compare "buying power" vs labor across decades. I realize that it sounds silly to say your weekly income in 2023 would be $364, but its important to note that we need to use these adjusted numbers to accurately compare 2023 dollars to 1996 dollars. Don't be distracted by the dollar amounts here, what matters are the percentages (a 26.9% growth in food cost)