The Urban Institute's data lands at a moment when the gap between grocery store prices and household budgets has rarely felt wider. Grocery prices jumped 2.9% in April alone — a rise the researchers tie to higher fuel costs connected to the Iran conflict, weather-related supply disruptions, and the ripple effects of trade policy changes.

What makes the Urban Institute's findings striking is not just that Americans are struggling — it's how they're coping. Savings accounts built for emergencies, retirement, or future goals are now being cracked open for eggs and bread. That's a structural shift in how American households manage money, not just a short-term budget squeeze.

How Americans Are Paying for Groceries in 2025

The Buy Now, Pay Later finding is particularly telling. Once reserved for electronics and online retail, these short-term financing tools are now being used at checkout lines for weekly essentials. And the Urban Institute's data reveals the stress behind that shift: among adults who used Buy Now, Pay Later for groceries, one in three missed a payment — a sign that even the act of splitting a grocery bill into smaller chunks isn't always enough to keep up.

How Well Do You Know America's Grocery Crisis?

Four questions. See how the numbers compare to what you'd expect.

What share of Americans are using their savings accounts to pay for groceries, according to the Urban Institute?

• About 1 in 20 (5%) — Much higher. The Urban Institute found 1 in 5 Americans — not 1 in 20 — are dipping into savings accounts to cover grocery costs.
• About 1 in 10 (10%) — That's actually the share using Buy Now, Pay Later — not savings. The savings figure is twice as high: 1 in 5 Americans.
• About 1 in 5 (20%) — Correct. The Urban Institute found 1 in 5 Americans are drawing on savings accounts to pay for groceries — and 20% specifically said those savings weren't meant for daily expenses.
• About 1 in 3 (33%) — One in three is the share of Buy Now, Pay Later grocery users who missed a payment — not the savings figure. The savings number is 1 in 5.

Among adults who used Buy Now, Pay Later to buy groceries, what fraction missed a payment?

• About 1 in 10 — Lower than reality. The Urban Institute found that missed payments were far more common — 1 in 3 Buy Now, Pay Later grocery users missed at least one payment.
• About 1 in 5 — Close, but the actual figure is higher. One in three — not one in five — of those who used BNPL for groceries missed a payment, per the Urban Institute.
• About 1 in 3 — Correct. One in three Buy Now, Pay Later grocery users missed a payment — a striking default rate for something as basic as food.
• About 1 in 2 — Not quite that high, but the real figure is still alarming. One in three BNPL grocery users missed a payment, according to the Urban Institute's 2025 survey.

By how much did grocery prices rise in April, and what drove the increase?

• 1.2% — mainly drought conditions — The increase was higher, and the causes were broader. Grocery prices rose 2.9% in April, driven by higher fuel costs tied to the Iran conflict, weather impacts, and trade policies.
• 2.9% — fuel costs, weather, and trade policy — Correct. Grocery prices climbed 2.9% in April — a convergence of fuel cost increases tied to the Iran conflict, weather disruptions, and trade policy effects all hitting at once.
• 4.5% — labor shortages at processing plants — The April rise was 2.9%, not 4.5%. The drivers were higher fuel costs linked to the Iran conflict, weather impacts, and trade policies — not labor shortages.
• 2.9% — primarily supply chain backlogs — The 2.9% figure is right, but the causes go beyond supply chains. The article specifically cites higher fuel costs tied to the Iran conflict, weather impacts, and trade policies as the drivers.

What share of consumers bought groceries with a credit card in 2025 and paid the balance in full?

• About 15% — Lower than the actual figure. The Urban Institute found nearly 35% of consumers used a credit card for groceries in 2025 and paid the full balance — more than twice your guess.
• Nearly 35% — Correct. Nearly 35% of grocery shoppers used a credit card and paid the balance in full in 2025, per the Urban Institute — the most common payment adaptation tracked in the survey.
• About 50% — A bit high. The Urban Institute found nearly 35% — not half — of consumers paid grocery credit card balances in full in 2025.
• About 60% — Significantly higher than reality. The Urban Institute found nearly 35% of consumers used credit cards for groceries and paid them off in full — a meaningful but not majority share.

The Urban Institute's survey findings — 1 in 5 Americans drawing on savings, 1 in 10 using Buy Now, Pay Later, 1 in 3 of those missing payments — map the contours of a slow-motion financial squeeze. These are not people who are dramatically behind. Many are doing everything right: paying credit cards in full, shopping intentionally, looking for strategies like 'backwards shopping' to reduce waste. And they are still running short.

The national unemployment rate sits at 4.2% as of June 2026, which means this pressure is landing across a broadly employed workforce — not a population in crisis by traditional economic measures. The strain is arriving quietly, at the checkout line, one trip at a time.

The Grocery Pressure Snapshot

• 2.9% — Grocery Price Increase
• 20% — Using Unintended Savings
• 35% — Credit Card, Paid in Full
• 4.2% — National Unemployment

What's True About How Americans Pay for Food

Most Americans using BNPL for groceries are keeping up with payments.

Verdict: false

The Urban Institute found that one in three adults who used Buy Now, Pay Later for groceries missed a payment — a remarkably high default rate for basic household staples.

Only Americans in financial distress are dipping into savings for groceries.

Verdict: mostly false

The Urban Institute's survey found 1 in 5 Americans overall are drawing on savings — including 20% who said those savings weren't intended for daily expenses. This cuts across a broad swath of the population, not just those in crisis.

Grocery prices rose in April due to a single cause.

Verdict: false

The April 2.9% grocery price increase was driven by a convergence of factors: higher fuel costs tied to the Iran conflict, weather-related supply impacts, and trade policy effects — not any single driver.

Practical Steps If Grocery Costs Are Straining Your Budget

1. Try backwards shopping — A strategy gaining popularity: plan purchases around what you already have before adding new items. The method is designed to reduce overbuying and prevent food from going to waste.
2. Understand your 'best by' dates — Food labeled with 'best by' dates is often still safe to eat after that date. Knowing the difference can help stretch a grocery budget without sacrificing safety.
3. Track which savings you're using — The Urban Institute found 20% of Americans are using savings not intended for daily expenses. If you're doing this, flag it — spending down retirement or emergency funds on groceries is a different kind of risk than using a monthly food budget.
4. Be cautious with Buy Now, Pay Later for essentials — One in three Americans who used BNPL for groceries missed a payment. Splitting a grocery bill may feel manageable, but missed payments can compound quickly when applied to recurring weekly expenses.

The Urban Institute's research captures something that grocery receipts alone cannot: the quiet financial decisions Americans are making before they ever get to the checkout. Whether it's choosing a credit card over a debit card, unlocking a savings account that was meant for something else, or splitting a $60 grocery run into four installments — each of these is a small act of improvisation under pressure.

With grocery prices up 2.9% in April and the Consumer Price Index continuing to reflect broad inflationary pressure, the question the Urban Institute's data raises isn't whether Americans are struggling — it's whether the tools they're reaching for are sustainable. For the one in three Buy Now, Pay Later grocery users who missed a payment, the answer, at least for now, is no.

Tools to Reduce Grocery Spending

• Try Backwards Shopping: Before making your next grocery list, check what you already have. The approach is designed to help shoppers buy only what they'll actually use — cutting overbuying and food waste.
• Know What 'Best By' Really Means: Best-by dates are often quality indicators, not safety deadlines. Understanding the difference can help stretch what's already in your refrigerator further.
• Protect Your Long-Term Savings: If you're using savings not intended for daily expenses to buy groceries — as 20% of Americans are, per the Urban Institute — consider whether a budget rebalance could reduce that draw before it becomes a pattern.

Sources & References

• Primary source: Scripps News — Kelly Broderick
• Urban Institute — 2025 consumer survey on grocery payment methods, savings account usage, and Buy Now Pay Later adoption
• U.S. Bureau of Labor Statistics — National unemployment rate, June 2026, seasonally adjusted