The average American household spent a slightly larger percentage of its income on total food—grocery and restaurant purchases—in 2016 than in 2015. The increase from 12.5 percent of expenditures in 2015 to 12.6 percent in 2016, possibly reflects 2016’s 0.3 percent rise in total food prices, combined with the 2.1 percent decline in transportation costs.
With a 12.6 percent share, food ranked third behind housing (33 percent) and transportation (15.8 percent) in a typical American household’s 2016 expenditures. Breaking down food spending further, 7.1 percent of expenditures were spent at the grocery store and 5.5 percent at restaurants.
Looking at expenditure shares over time, food’s share has steadily declined since 1984 (the first year of available data), when food expenditures accounted for 15 percent of consumer spending. As the share for food has declined, the shares of income spent on housing, health care, and entertainment have increased from 1984. — USDA Economic Research Service
