Low-income households face ‘remarkable’ rise in food insecurity in K-shaped economy: New York Fed
The Federal Reserve Bank of New York reports a significant rise in food insecurity linked to the K-shaped economy. Lower- and middle-income households are particularly affected due to rising costs of essential goods. The expiration of pandemic-era aid and tightened SNAP benefits have exacerbated these challenges.
- ▪The K-shaped economy has led to a remarkable increase in food insecurity.
- ▪Lower- and middle-income households are facing high levels of financial strain.
- ▪Nearly 14% of American households were food insecure in 2024, according to the U.S. Department of Agriculture.
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The so-called "K-shaped economy" is now linked to "a remarkable increase in food insecurity," according to a new blog post by the Federal Reserve Bank of New York.Large segments of the population are facing high levels of financial strain, according to a post published on Wednesday, based on data from the Survey of Consumer Expectations.Among this group, lower- and middle-income households have been hardest hit by prolonged inflation. A greater share of their spending is allocated to goods that have seen prices soar since the pandemic, such as housing, food and utilities, causing them to cut back on groceries, the researchers found.
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