4 Food Prices Rising as Oil Costs Skyrocket
The next time you check out at the grocery store, you might experience sticker shock.
Food costs are rising amid higher oil prices due to tensions with Iran. Food prices are 2.9% higher over the past year, which makes a significant difference for many Americans.
Here are four foods soaring in price, plus how to budget for higher prices and cheaper alternatives.
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Corn
Corn is a high-demand commodity because it’s used in everything from livestock feed to dairy production and favorite go-tos like chips and corn-based sweeteners.
“It’s the most fertilizer-intensive major U.S. crop, and urea (the main nitrogen fertilizer) has roughly doubled since February to around $900 per metric ton,” said Arif Gasilov, ESG strategy partner at consultancy Gasilov Group.
According to the Farm Bureau, 70% of American farmers say they can't afford all the fertilizer they need right now. This is putting stress on farms and driving up prices, Newsweek reported.
Packaged and Processed Foods
Packaged snacks and processed foods are pantry staples and prices are going up. Cody Schuiteboer, president and chief executive officer at Best Interest Financial, expects the prices to increase.
“Costs can rise across the supply chain — from agricultural production, where fuel and fertilizer expenses affect crop prices, to manufacturing and packaging, which are also influenced by energy costs and petroleum-based materials like plastic,” he said.
Keep an eye on cereals, snack items, frozen meals and anything in plastic because those items will jump in price, Schuiteboer said.
Fresh Vegetables
Fresh produce is becoming pricier due to the Iran conflict. According to the U.S. Department of Agriculture, the cost of fresh veggies climbed 0.9% from February 2026 to March 2026. Additionally, prices were 7.5% higher in March 2026 than a year prior.
“Farm equipment typically runs on fuel, so when fuel costs rise, operating costs rise and the cost of produce increases,” said Melanie Musson, a finance expert with Clearsurance.com.
Seafood
Washington's WUSA9 reports seafood pricesare also rising due to high fuel prices, which are one of the biggest expenses for fishermen, along with labor.
“Seafood is getting hit immediately because it's typically air-freighted and jet fuel has more than doubled,” Gasilov said.
How To Prepare Financially
When prices for necessities increase, it takes a chunk of your monthly budget you weren’t expecting. But there are ways to help combat costs.
“Treat today’s prices as your new baseline and shift dollars from discretionary spending to cover the gap,” said James Comblo, partner, Prosperity Capital Advisors. “Build in a small buffer, too — food costs are volatile and your budget shouldn’t break every time prices move.”
The experts also recommend you build an emergency fund to cover unexpected expenses.
“My clients usually budget for their expenses, assuming that their financial state doesn't change over time, but it is necessary to reconsider and adjust the emergency fund according to the current budget of a household,” said Schuiteboer. “Most households' budgets have grown by 8%-12% in the last eighteen months.”
And don’t use credit cards to buy groceries that you can’t pay off at the end of the billing cycle.
“On average, credit cards in 2026 have APRs of above 20%,” said Schuiteboer. “Using a credit card to finance $200-$400 worth of increased expenses on food every month implies a much faster rate of accumulated interest.”
How To Make Cheaper Choices
Food is obviously something everyone needs, but you can make changes in how you shop that can help cut down the bill.
Shop at farmers' markets. “The diesel transport markup is lower and the prices are less inflated,” said Gasilov.
Grow your own vegetables. “Some of the best performers and easiest to grow are tomatoes, zucchini and salad greens,” Musson said.
Stock up on shelf-stable proteins like canned beans, lentils and canned tuna. “Fertilizer cost increase hits processed foods three to six months behind the input cost spike,” Gasilov said.
As oil prices continue to ripple through the global economy, food costs are likely to remain sensitive to further energy and supply chain shocks.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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