Inflation is cooling overall, but food prices have been more stubborn.
To combat high prices, some people are seeking out the best deals at different stores.
I went to three stores to see where I could find the best prices for my family of four.
While inflation has come down quite a bit since its peak in June 2022, one place where Americans are still being hit hard is at the grocery store.
Walmart CEO Doug McMillon said food prices had not recovered in 2023 as much as other areas, during an interview with CNBC's "Squawk on the Street" on December 6.
"We are down in pricing in the general merchandising categories, meaning non-food categories, about 5% now," said McMillon when discussing pricing at his stores compared to 2022. "But the dry goods and consumables categories, processed food, had quite a bit of stubborn inflation in it for a period of time."
At home, I do the grocery shopping for a family of four, and like many others, the current economy has turned it into something that can be both stressful and a bit of a game. Finding the best deals is a constant battle, often taking me to multiple stores.
And even when things are on sale, it is not always easy to know when you are getting a good deal.
To determine where the best prices can be found, I went to three large but different stores selling groceries in December: Walmart, a big box store; Costco, a warehouse club; and HEB, a large grocery chain in Texas.
I compared the prices of 13 everyday items at each of the stores. While I paid more at Costco because of the bulk and limited choices in quantity, on a per-unit basis, it was the best deal overall, costing about $65.
Meanwhile, HEB and Walmart were nearly identical, at about $73, and several items were priced precisely the same. It was surprising because I generally viewed Walmart as a cheaper option but also disappointing because they have far fewer options in the various categories.
Here's how some of the grocery prices compare at the three stores.
Eggs were cheaper at Costco, if you need a lot.
Egg prices at Costco (left) and HEB.
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I started my shopping with eggs. Prices per 12 eggs: Costco, $2.35; HEB, $2.52; Walmart, $2.58.
While I want to save as much money as possible, I am still burdened with a conscience and some guilt. So, we pay a little extra to support cage-free options.
Like many things at Costco, you must weigh the value versus how much you need. In the case of eggs, your only option is two dozen. It is not saving you money if you don't use it fast enough and throw some away. And believe me, there is no fudging expiration dates with my 13-year-old freshness cop of a daughter.
Costco is also the best for ground beef, if storage is not a concern.
Ground beef at Costco.
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Prices per pound: Costco, $3.89; Walmart, $4.48; HEB, $4.59.
I looked at the pricing for about 2.5 pounds at HEB and Walmart. At Costco, the option was six pounds. This is a little easier for our family as we have a vacuum sealer and a large freezer, so storage is possible and saves us money.
But if size is not an issue, I will let you in on a popular Costco hack: ask one of the butchers for a 10-pound "chub." This is how the meat is delivered to the store before it is packaged. They will often sell this to you for an even cheaper per-pound price, and it is even leaner than the stuff on the shelves.
I was surprised that Costco wasn't a better deal for mac and cheese.
Macaroni and cheese at HEB (left), Walmart (center), and Costco.
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Prices per box: HEB, $0.88; Walmart, $1.44; Costco, $1.46.
We have two teenagers, so mac and cheese is a must. When I go to Costco, I typically get Annie's organic mac and cheese, but it turns out that not only am I stuck with a variety pack, but it is not even cheaper per box than Walmart.
However, we are also big fans of HEB store brands, which, like Costco's Kirkland brand, are almost always as good as the big brands. And this is where HEB has the advantage: Not only can I pick precisely what we want, but it is a lot cheaper.
Soy milk is a reminder that Costco does have limitations.
Soy milk at Walmart.
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Prices per half gallon: HEB, $3.86; Walmart, $3.86; Costco, N/A.
Our preferred Silk brand of soy milk was priced precisely the same at HEB and Walmart.
Meanwhile, our Costco doesn't carry soy milk. They have a Kirkland soy non-dairy beverage that is cheaper at $2.67 per half gallon, but you must buy three gallons.
Bread was also the same price at HEB and Walmart.
Bread at HEB (left) and Walmart.
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Prices per loaf: Costco, $4.75; Walmart, $5.98; HEB, $5.98.
Bread is another area where I don't mind splurging a bit to be a little healthier — I love some Dave's killer bread with an egg and some avocado in the morning (*chef's kiss*), but I digress.
Once again, Costco was the cheapest, but you must buy two loaves. I don't mind freezing bread, so this is the better option for us.
At HEB and Walmart, the prices were the same.
Even some produce had the same prices.
Bananas at Walmart (left) and HEB.
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Prices per pound: Costco, $0.50; Walmart, $0.58; HEB, $0.58.
Again, bananas are the same price at HEB and Walmart.
Meanwhile, Costco was once again a little cheaper, but you have to buy three pounds. That's a lot for one family unless you like to freeze them for yonanas in the summer.
Frozen pizza is a reminder that your options are limited at Costco.
Frozen pizza at HEB (left) and Walmart.
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Prices per pound: Costco, $2.97; Walmart, $6.96; HEB, $6.96.
With restaurant food prices still soaring, we find ourselves eating more frozen pizza on Friday nights.
Costco is the cheapest by a country mile for frozen pizza, but you only have a few options. The Kirkland pizza is an acceptable alternative, but our girls prefer what they call "fluffy pizza" with DiGiorno's rising crust.
Again, these were the same price at HEB and Walmart.
If you like deli meats and cheeses, your local grocery store is your best option.
Deli food at HEB.
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Prices per pound of Colby cheese: Walmart, $7.62; HEB, $7.97; Costco, N/A.
The Walmart and HEB prices were fairly comparable at the deli, but the options were much more limited at the former. Meanwhile, your only sliced meat and cheese options at Costco are pre-packaged.
If you can find a beer you like at Costco, it is a big win.
Beer at Costco.
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Prices per 12 cans of Corona Premier: Costco, $13.33; Walmart, $14.73; HEB, $14.73.
You can find beer brands like Coors or Corona at all three locations. If that's your poison, it is cheaper at Costco and the same price — again — at HEB and Walmart.
But if you are like me and have picky beer tastes, it can be hit or miss at Costco. I am a big fan of Sierra Nevada's seasonal celebration brew, so I was excited to see a 12-pack at the warehouse for $14.00.
At HEB, the same thing would set me back $20.54.
I found that the best option is some mix of Costco and HEB and skip Walmart.
HEB has competitive prices and plenty of options.
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Unless you have coupons or know some specific items are on sale, Walmart was not worth the trip for groceries alone for my shopping needs. The prices were no better than HEB and they had a lot fewer options and variety.
Meanwhile, Costco is often the better deal for us, especially if we don't mind stocking up and won't let the food go to waste. But also be careful: Don't make the mistake — like I did — of just assuming that buying bulk is always cheaper. Sometimes it is not.
The best deals and options for our family will be some combination of shopping at HEB and Costco while avoiding Walmart groceries unless I am already going there for something else.
