Capitol Correspondent on California cost concerns: ‘Californians pay the highest grocery prices in the nation’

Ashley Zavala
Ashley Zavala
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Ashley Zavala, California Capitol Correspondent for KCRA News, said on X that proposed labor regulations on self-checkout kiosks could potentially increase grocery costs unless the ability to sell alcohol at those kiosks is allowed to offset the expense.

“Californians pay the highest grocery prices in the nation,” said Zavala. “If the union really wants to regulate how we staff our self‑checkout lanes, then give us the ability to satisfy our customers and offset the additional costs rather than passing it on to consumers. The biggest criticism we hear from our customers about the self‑checkout experience is that they can’t buy alcohol there. This seems like a clear example of why Californians pay the highest prices for groceries, regardless of what checkout line they go through.”

California consistently ranks among the states with the highest grocery bills, significantly above the national average of $270 per week. According to Investopedia, factors contributing to this include a high cost of living, environmental policies, elevated fuel prices, drought-driven supply issues, and tariffs. These pressures are particularly acute for families and larger households. Such structural cost drivers underscore why grocers cite high baseline prices.

The Energy Information Administration (EIA) reports that California gasoline prices remain the highest in the continental United States, often exceeding the national average by more than $1 per gallon due to state and local taxes, environmental mandates, specialized fuel requirements, and geographic market isolation. These elevated fuel costs directly increase production and transportation expenses, contributing to higher grocery prices statewide.

A law enacted on January 1, 2025, raised California’s minimum auto insurance liability limits to 30/60/15 from 15/30/5. According to the San Francisco Chronicle (SF Chronicle), insurance groups estimate this change could cost consumers an additional $80 to $400 per year. Additional upward pressure on premiums stems from increased vehicle ownership and parts costs, more frequent lawsuits, and other claims-related expenses.

Beyond regulation, climate- and risk-related lawsuits are straining California’s insurance markets. The Associated Press (AP News) reports that in response to major wildfires, insurers are increasing premiums or dropping coverage in high-risk zones. This has pushed many homeowners into FAIR Plan—a costly state emergency backstop pool—signaling broader vulnerabilities that could translate into higher automobile or related insurance costs.

Zavala is a seasoned Capitol correspondent for KCRA News and serves as president of the Capitol Correspondents Association of California. She has earned respect across the Capitol press corps for her rigorous and direct political coverage.



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