Kentucky and Indiana Top the List for Low Grocery Prices in 2025

Inflation hasn't made grocery shopping easy, but according to a new report, it looks like Indiana and Kentucky are faring much better than other states.

I could go on and on about how expensive groceries have become and how frustrating it is, but let's face it: you've probably already heard it from everyone else. Fortunately, if you're grocery shopping in Indiana and Kentucky, the sticker shock is likely less intense compared to other places. Both states have recently been added to a list of the most affordable for everyday goods, ranking higher than you might expect.

Where to Find the Cheapest Groceries in 2025

According to a new report from Food Label Maker, Kentucky and Indiana now rank as the 5th and 6th least expensive states for grocery shopping. Texas came in as the No. 1 cheapest state for groceries, with grocery costs 9.7% below the national average. However, it’s not all good news.

Most states featured on the list have experienced a steep price increase for everyday goods over the last two years. For example, prices in Kentucky have jumped over 13%, while prices in Indiana have risen by more than 27%. Overall, grocery costs in the U.S. rose by an average of 21.7% between February 2020 and fall 2024.

Why Grocery Costs Vary by State: Factors Affecting Prices in 2025

According to Delish, sticker prices can differ by state due to regional economic conditions, cost of living indices, and even demographic factors. For example, states with higher costs of living and urbanization tend to have higher prices due to increased operational costs for retailers. On the other hand, states with lower living costs may benefit from lower expenses and proximity to agricultural production centers. In essence, the variation in grocery costs is influenced by a combination of economic, geographical, and social factors unique to each state.