New Orleans consumers struggle with high grocery costs

Grocery prices rose at the fastest pace in three years last month, keeping pressure on household budgets even as overall inflation held steady.

Why it matters: Broad inflation relief is little consolation for Americans if they aren't seeing it reflected in grocery bills.

By the numbers: Grocery prices rose 0.7% from November to December, the largest monthly gain since the peak inflation period in August 2022.

• Food inflation was evident at restaurants, too: Costs for dining out rose by a similar amount, the largest monthly gain in three years.

The intrigue: Grocery prices were up roughly 2.4% in December compared to the prior year.

• But that masks double-digit price increases for a slew of household staples over the past 12 months, including coffee (+20%), beef (+16%) and candy (+10%).
• President Trump rolled back tariffs on many household staples late last year. Among them: bananas, which saw prices fall by almost 2% in December. But costs are still up roughly 6% compared to the prior year.
• There is some relief elsewhere in the grocery store: Egg prices, for instance, are down more than 20% from a year ago, with an 8% decline in December alone.

Zoom in: New Orleans shoppers are entering 2026 with reshuffled grocery store options after Robért Fresh Market bought Langenstein's and Southeastern Grocers is offloading all its Winn-Dixie stores in the state.

• Ten of those are transforming into Rouses Markets.
• But a large number are also becoming Aldi stores as the discount grocer capitalizes on consumer hunger for less expensive goods.
• Aldi plans 180 store openings nationwide this year, Axios' Kelly Tyko reports.

Go deeper: As grocery prices rise, so do bean sales