Low-income households face ‘remarkable’ rise in food insecurity in K-shaped economy: New York Fed
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- New York Fed reports that low‑ and middle‑income households have seen a "remarkable increase" in food insecurity as inflation forces them to allocate more of their budget to housing, food, and utilities, cutting back on groceries.
- U.S. Department of Agriculture estimates that 14% of American households were food insecure in 2024.
- President Donald Trump's "big beautiful bill" tightened SNAP work requirements, coinciding with the expiration of pandemic‑era expanded SNAP benefits, which researchers say has heightened food insecurity concerns.
- University of Michigan Surveys of Consumers recorded all‑time‑low consumer sentiment in May, and about one‑third of households now expect a worse financial situation in a year.
- AAA reports the national average gasoline price reached $4.46 per gallon, up roughly 40% from a year earlier, adding to the financial strain on lower‑income families.
Why it matters: Low‑income families lose purchasing power as 14% of households face food insecurity, while tighter SNAP rules and a 40% gas price surge push more households into hardship, deepening the K‑shape divide.
