USDA’s annual survey on food security among American households showed, not unexpectedly, that food insecurity increased during the 2007-09 recession. But, while the monthly unemployment rate dropped from 10% in 2009-10 to 8.3% in 2012, there was little improvement in the level of food insecurity. The national prevalence of food security was 14.5% in 2012, essentially the same as in 2009 and 2010. What could be the explanation?
USDA found that found that unemployment, general inflation, and food price changes relative to general inflation all played a role--together they account for 92% of the year-to-year variation in food security from 2001 to 2012. From the early post-recession period (2009-10) to 2012, inflation increased almost one and a half percentage points. The price of food relative to the price of all goods and services was two-thirds of a percentage point higher in 2012 than in 2009-10. Higher general inflation, combined with higher relative food prices, offset any gain in food security from lower unemployment in 2012. With many living expenses rising, families had less money to spend on food, and higher food prices meant food budgets didn’t stretch as far.
Source: USDA, 7/1/14, Food Insecurity
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