For millions of American households, a trip to the supermarket has become more than a budgeting challenge. Rising food costs are forcing families to rethink their spending, make difficult financial sacrifices and cope with mounting emotional stress, according to new research from Penn State.
Published in the journal Applied Economic Perspectives and Policy, the study found that higher grocery prices were associated with increased food insufficiency, greater household spending and poorer mental health, regardless of how families adjusted their shopping habits.
Researchers analysed data from the U.S. Census Bureau’s Household Pulse Survey, which tracks how economic disruptions affect American households. They identified four distinct groups based on the strategies families adopted to manage rising food prices, revealing considerable differences in financial vulnerability.
The largest group, representing approximately 44% of households, made relatively few changes to their shopping routines. Another 28% adopted cost-saving measures, including switching to generic brands, visiting cheaper supermarkets and eating out less frequently.
A further 20% made broader financial adjustments, such as reducing food expenditure, postponing major purchases and sometimes delaying medical treatment. The remaining 8% faced particularly severe pressures, taking on additional work, borrowing money, reducing savings or cutting essential utility expenses.
Despite these different approaches, all four groups experienced higher food spending, increased risks of food insufficiency and worsening mental health. The findings suggest that even households actively trying to control expenses may struggle to protect themselves from inflation’s wider consequences.
Interestingly, households making the greatest sacrifices showed some of the smallest increases in food insufficiency and anxiety. Lead researcher Yizao Liu, associate professor of agricultural economics at Penn State, suggested these families may already have been experiencing substantial hardship before prices began climbing, leaving less room for their circumstances to deteriorate further.
The pressures have intensified following years of economic disruption. Between 2020 and 2024, U.S. grocery prices increased by more than 20%, outpacing overall inflation. Researchers pointed to pandemic-related disruptions, climate-related supply problems and rising energy costs as contributing factors.
Liu explained that coping strategies often reveal underlying financial vulnerability rather than successful adaptation. Switching supermarkets or choosing cheaper products might provide temporary relief, but households resorting to borrowing, working additional hours or postponing healthcare remained particularly exposed to food hardship and anxiety. The researchers suggested that coordinated assistance combining food support, housing relief and mental health services could better address these overlapping challenges.
The findings highlight the importance of looking beyond grocery bills when assessing inflation’s impact on household wellbeing. Future research could examine how families move between different coping patterns over time and whether targeted policies can prevent financial pressures from developing into more serious food insecurity and mental health difficulties.
More information: Yuxiang Zhang et al, Behavioral Coping With Food Price Inflation: Patterns Among U.S. Households, Applied Economic Perspectives and Policy. DOI: 10.1002/aepp.70124
Journal information: Applied Economic Perspectives and Policy Provided by Penn State