Low-income households face ‘remarkable’ rise in food insecurity in K-shaped economy: New York Fed

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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 experiencing price surges since the pandemic, such as housing, food, and utilities, leading them to cut back on groceries.

A higher cost of living, combined with cuts to the SNAP program, has sparked renewed concerns over food insecurity at the bottom of the K-shape.

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