Most expensive groceries in the country...

[Durian Fiend]

FWIW, If you feed the question "Does the SNAP program drive up the price of groceries" into google AI the answer is:

"Yes, research and economic analysis suggest the SNAP program can drive up grocery prices by increasing demand, benefiting retailers and producers"

Of course, the main reason Alaska and Hawaii are outliers with high grocery prices is the cost of transportation. Otherwise most states look surprisingly uniform.

[MyManao]

If you feed the question into google AI the answer is..

A few points.. ai doesn't have a lick of sense.. doesn't know right from wrong.. so maybe sprinkle a little salt on that.

And still, whatever ai or anyone else says.. people have to eat. How it's gotten, snap or whatever, the food has to be gathered and consumed. Even if folks get it from the food bank.. no matter they gotta eat.

I think the more important question is why would anyone begrudge helping those in need? To me that's a far more important issue to address.

[HiloJulie]

Yes, I know this post is long and drawn out, but I am a bit sick of seeing the debating of complex topics simply with bullet points, selected snippets, opinions and sound bites. My apologies in advance.

With all due respect DF, I think it is only fair to post the entire AI response to the question "Does the SNAP program drive up the price of groceries." I have cut and pasted the response I got below:

Yes, research indicates that increased SNAP (Supplemental Nutrition Assistance Program) benefits and spending do lead to higher grocery prices, as the added demand puts upward pressure on food costs, benefiting retailers and producers but potentially increasing expenses for non-SNAP shoppers. Studies show a direct correlation, with a 1% increase in SNAP benefits potentially raising prices by about 0.08%, driven by artificially inflated food demand, though advocates argue the benefits are necessary to combat rising costs and improve nutrition.

How SNAP Can Drive Up Prices:

Increased Demand: SNAP provides subsidies, increasing the money available for food purchases, which boosts demand.

Market Response: Retailers, especially large ones, see significant revenue from SNAP, and increased demand can allow them to raise prices, passing costs onto all customers.

Economic Impact: Some analyses suggest that increased SNAP spending acts as a wealth transfer, benefiting producers and retailers more than just recipients, and costing taxpayers.

Counterarguments & Nuances:

Necessity: Advocates argue that benefit increases are essential because food costs have risen significantly, and SNAP helps low-income families afford healthier options.

Retailer Dependence: For many smaller grocers, SNAP is a huge portion of sales, and cuts could force them to raise prices or even close, affecting food access.

Multiplier Effect: SNAP dollars generate economic activity, creating jobs and supporting local businesses, not just increasing prices.

In essence, while SNAP increases demand, leading to price rises that affect everyone, it also provides critical food access, making it a complex issue with economic benefits and drawbacks. 

A further deep dive into the AI response provided this:

The impact of the Supplemental Nutrition Assistance Program (SNAP) on grocery prices is a subject of debate, with research showing both inflationary pressures and negligible effects depending on the economic context.

Evidence for Price Increases

Artificially Inflated Demand: Economists argue that SNAP functions as a wealth transfer that artificially boosts spending power for food. This increased demand can drive up prices, particularly for specific categories like soft drinks and staples.

Expansion-Linked Spikes: Some studies linked the 2021 permanent expansion of SNAP benefits to a notable increase in food prices. One study claimed this expansion contributed to a 15% rise in grocery prices over the following two years.

Specific Commodity Impact: Research has shown that SNAP can increase the prices of farm commodities by less than 1% due to increased demand for the raw products farmers grow.

Retailer Costs: Recent 2026 data indicates that proposed SNAP restrictions on what can be purchased (e.g., junk food bans) may actually raise prices for all consumers because of the administrative and technical costs retailers must absorb to comply.

Evidence for Negligible or Offsetting Effects

Limited Macroeconomic Impact: Some economic models suggest that because SNAP recipients substitute their own income for SNAP benefits (rather than just increasing total spending by the full amount of the benefit), the overall inflationary effect on grocery prices is minimal.

Supply-Chain Dominance: Broader inflation drivers—such as extreme weather, drought affecting cattle herds, and trade patterns—often have a much larger impact on grocery store prices than SNAP spending.

Economic Multiplier: While it may put minor upward pressure on prices, SNAP is also credited with stimulating local economies. Every $1 in SNAP benefits is estimated to generate between $1.50 and $1.80 in regional economic activity.

2026 Policy Context

As of early 2026, the program is undergoing significant changes that may affect these dynamics:

Benefit Caps: New federal rules passed in 2025 limit benefit increases to annual cost-of-living adjustments (COLA) only, which may curb previous inflationary trends.

State Cost-Sharing: Starting in 2026, states are facing new requirements to pay a portion of benefit costs based on error rates, which could lead to reduced eligibility and a subsequent drop in food spending in some regions.

Nutritional Restrictions: Eighteen states are implementing new restrictions on eligible food items in 2026, which some analysts predict could lead to localized price shifts as demand for certain products changes.

So, although SNAP benefits do slightly increase the cost of groceries, the primary benefactors are the retailers even more so than the actual SNAP recipients. However, the significant curtailing or elimination of those SNAP benefits, aside from the immediate disastrous human impact on those SNAP recipients, would have a much more disastrous effect on the retailers as well as the entire downstream supply chain impacting the entire US economy even more.

Also, as MyManao pointed out, the amount of SNAP benefits paid in 2024 was just north of 100 billion. It has been reported that WalMart captures 25% of that 100 billion alone. That would be 25 billion annually WalMart would lose if SNAP was suddenly eliminated. WalMart's reported U.S. net sales for 2024 was 442 billion. What do you think the outcome to the US economy would be if WalMart had a sudden 5.7% drop in revenue? 

At any event, until we reach the Star Trek post-scarcity utopian economy, the human benefits to the recipients, retailers, supply chain and US economy etc., with respect to SNAP far outweigh the impacts all of those if significantly curtailed or eliminated. While the single mother of 2 or 3 kids would no doubt go very hungry, the 250k plus a year individual would see his 401k shrink enormously and the cost of a Morton's Steak House dinner rise considerably.

As an aside with respect to increased grocery costs, the 48 ounce can of WalMart Great Value Coffee at the Hilo Walmart is now 25 bucks. It was 15 bucks 3 months ago. I highly doubt that 10-dollar price increase has anything to do with SNAP or for that matter, ANY Hawaii coffee grower.

[tikicarver]

I was in Oregon visiting a few months ago and went into a large grocery store outside of Astoria. Besides milk, bread and fresh veggies everything else was about the same as you can find here in Hilo.

RE: milk and bread.    I worked for Aloha Airlines back  in the 2000s.  every night we would fly bread from Love's and milk from the diarys on Oahu to all the outer islands  ( newspapers too , LOL)
but there are no dairys in Hawaii any more and Loves went out of business.

[HereOnThePrimalEdge]

every night we would fly bread from Love's

I remember those rolling racks of bread, packed full, about 6 feet high? Sometimes the cargo terminal smelled like a bakery!

[MyManao]

there are no dairys in Hawaii any more..

I don't drink the stuff, so am not as keenly aware as if I did, but what happened to Cloverleaf Farm, who, at least until a few months ago, supplied Meadow Gold? Additionally, a quick search even suggest they've expanded to distribution on Oahu. Am I missing something?

[Durian Fiend]

Studies show a direct correlation, with a 1% increase in SNAP benefits potentially raising prices by about 0.08%, driven by artificially inflated food demand, though advocates argue the benefits are necessary to combat rising costs and improve nutrition...

 This clearly shows that SNAP is inconsequential to the cost of groceries for you and me.

Instead of insulting the guy, accusing AI of being stupid or going into grand ethical digressions, these numbers show the dude is "right" but essentially wrong.

[Punatang]

Studies show a direct correlation, with a 1% increase in SNAP benefits potentially raising prices by about 0.08%, driven by artificially inflated food demand, though advocates argue the benefits are necessary to combat rising costs and improve nutrition...

 This clearly shows that SNAP is inconsequential to the cost of groceries for you and me.

Instead of insulting the guy, accusing AI of being stupid or going into grand ethical digressions, these numbers show the dude is "right" but essentially wrong.

It confirms how easy it is to find out whether a politically held belief is valid or not.  How easy it would be for people to check whether their preferred media is telling the truth or not.  How people are unwilling to invest a few seconds in finding out what is true.  Or how some people are willing to intentionally transmit false information?  Not making an accusation, because knowing intent is more difficult than finding accurate statistics.

[HiloJulie]

This clearly shows that SNAP is inconsequential to the cost of groceries for you and me.

Instead of insulting the guy, accusing AI of being stupid or going into grand ethical digressions, these numbers show the dude is "right" but essentially wrong.

To be clear, I did not insult the guy, nor have I accused AI of being stupid. As for ethical digressions, what's wrong with there being ethics in humanity? This whole debate over the cutting of SNAP and other government benefits, and while clearly there is waste, fraud and abuse, (did you read about the guy on the front page of today's HTH? Scammed the taxpayers 500k including 35k in COVID unemployment benefits - got 5 months) but in the big picture these programs are a significant amount of fuel for the economy. The whole justifications being spewed for the cutting these benefit programs reeks of pure unethical behavior, desires and beliefs.

Interestingly enough, if all these programs actually do get drastically cut or eliminated, and the American economy and Wall Street gets trashed along with it, guess how much that "bail out" bill will cost the taxpayer. Only part not bailed out will be the poor hungry single mom and her 3 kids. WalMart's CEO will still get his "performance" bonus!

As for the Dude being right but essentially wrong, well yes that's true.

[HereOnThePrimalEdge]

is "right" but essentially wrong.

As a grocery shopper in Puna, watching prices over the last year, I would say tariffs have driven up food prices far more than .08% from SNAP.  As far as I can tell, those huge increases in coffee prices haven’t resulted in an increase in Hawaii coffee production.  Oh yeah, the Friday brain doesn’t remember what the Tuesday brain did, so now there are no workers, American or otherwise to pick the coffee.

The coffee I used to buy at Costco last year for $14 was $24 on Monday.  Would I have liked to have pulled over in Kona and bought local?  Sure, but does anyone think that will happen?

But instead of discussing the real problem, let’s grumble about our $100.00 of groceries at the checkout costing $100.08.  Because of SNAP.