Kroger and other chains say customers on food assistance programs like SNAP are struggling as aid shrinks.

"Budget-conscious households are buying fewer items, particularly as SNAP benefits declined during the quarter," said Kroger CEO Rodney McMullen on an earnings call Thursday. "In some cases, we see these households switching to lower-priced products and smaller pack sizes."

"There's a significant reduction in SNAP dollars in the marketplace," he said. Customers are "making significant modifications" such as buying a four-pack of an item instead of a 12-pack.

In March, an estimated 16 million households receiving SNAP (Supplemental Nutrition Assistance Program) benefits in 32 states and Washington, DC, saw their benefits decrease by at least $95 monthly, according to estimates from the Center on Budget and Policy Priorities, a left-leaning research and policy institute.

The decrease came with the end of a Covid emergency policy that increased SNAP benefits to the maximum level for every recipient. In 18 states, the additional benefits had already expired.

Dollar General, Dollar Tree, Walmart and other chains have also said recently that customers on food stamps are struggling most.

Dollar General CEO Jeffrey Owen said this month that customers were caught off guard by reduced SNAP benefits, "which exacerbated the inflationary pressures they were already experiencing."

"Unfortunately, our customers are saying they're having to rely more on food banks, savings, credit cards," Owen said.

Grocery prices ticked up in May after dipping in March and April, according to the latest data.

Rising prices at the supermarket are unwelcome news to people struggling to pay for food.

From April to May, adjusted for seasonal swings, grocery prices got 0.1% more expensive, according to the Bureau of Labor Statistics' Consumer Price Index, a key measure of inflation. Menu items prices grew 0.5% in that time.

Overall, grocery prices were 5.8% more expensive in May than they were a year ago.