United States 

Department of 

Agriculture

Economic

Research

Service

Economic

Information

Bulletin

Number 61

October 2009

Mark Nord

Food Spending Declined and 

Food Insecurity Increased for 

Middle-Income and Low-Income 

Households From 2000 to 2007
The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs 

and activities on the basis of race, color, national origin, age, disability, and, where 

applicable, sex, marital status, familial status, parental status, religion, sexual 

orientation, genetic information, political beliefs, reprisal, or because all or a part of an 

individual's income is derived from any public assistance program. (Not all prohibited 

bases apply to all programs.) Persons with disabilities who require alternative means 

for communication of program information (Braille, large print, audiotape, etc.) should 

contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). 

To file a complaint of discrimination write to USDA, Director, Office of Civil Rights, 1400 

Independence Avenue, S.W., Washington, D.C. 20250-9410 or call (800) 795-3272 

(voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.

National Agricultural Library

Cataloging Record:

Nord, Mark

Food spending declined and food insecurity increased for middleincome and low-income households from 2000 to 2007.

 (Economic information bulletin; no. 61)

 1. Food security—United States. 

 2. Food consumption—United States—Statistics.

 3. Cost and standard of living—United States.

 I. United States. Dept. of Agriculture. Economic Research Service. 

 II. Title.

HD6983

www.ers.usda.gov

Visit Our Website To Learn More:

Food Security in the United States

 www.ers.usda.gov/briefing/foodsecurity

Food CPI and Expenditures 

www.ers.usda.gov/briefing/cpifoodandexpenditures/

Photo credit: Comstock
United States

Department

of Agriculture

www.ers.usda.gov

A Report from the Economic Research Service

Abstract

From 2000 to 2007, median spending on food by U.S. households declined by 12 percent 

relative to the (rising) cost of USDA’s Thrifty Food Plan, and by 6 percent relative to 

the (rising) Consumer Price Index (CPI) for Food and Beverages. Over the same period, 

the national prevalence of very low food security increased by about one-third, from 3.1 

percent of households in 2000 to 4.1 percent in 2007. The deterioration in food security 

was greatest in the second-lowest income quintile, in which the prevalence of very low 

food security increased by about half. These estimates, based on data from the nationally 

representative Current Population Survey Food Security Supplement, are corroborated 

by corresponding declines in food expenditures by middle- and low-income households 

in the U.S. Bureau of Labor Statistics’ Consumer Expenditure Survey. The decline was 

largest in the second-lowest income quintile, in which average CPI-infl ation-adjusted 

spending for food declined by 16 percent. The declines in food spending by middle- and 

low-income households were accompanied by increases in spending for housing and, in 

the two lowest income quintiles, by declines in income and total spending. 

Keywords: Food spending, food expenditures, food security, food insecurity, consumer 

expenditure survey, current population survey food security supplement

Acknowledgments

The author thanks the following individuals for their reviews of the report: Mark Prell and 

Ephraim Leibtag, USDA, Economic Research Service (ERS); Sofi a Berto Villas-Boas, 

Department of Agricultural and Resource Economics, University of California, Berkeley; 

Parke Wilde, Gerald J. and Dorothy R. Friedman School of Nutrition Science and Policy, 

Tufts University; and Steven Carlson, USDA, Food and Nutrition Service. Also, thanks to 

John Weber and Wynnice Pointer-Napper of ERS for editing and design assistance.

Mark Nord, marknord@ers.usda.gov

Food Spending Declined and 

Food Insecurity Increased for 

Middle-Income and Low-Income 

Households From 2000 to 2007

Economic

Information

Bulletin

Number 61

October 2009
ii

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Contents

Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Data Sources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Economic Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Food Spending Declined for Households With Middle 

 and Lower Incomes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Food Security Deteriorated. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Declines in Food Spending and Food Security Were 

 Not Concentrated in Specifi c Types of Households . . . . . . . . . . . . . . . 9

Households Spent More on Housing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Appendix A—Relationship Between Food Spending 

 and Food Security at the Household Level . . . . . . . . . . . . . . . . . . . . . 17

Appendix B—Comparison of Household Food Expenditure 

Estimates From the Current Population Survey Food Security 

Supplement and the Consumer Expenditure Survey . . . . . . . . . . . . . . . 18

Recommended citation format for this publication:

Nord, Mark. Food Spending Declined and Food Insecurity 

Increased for Middle-Income and Low-Income Households From 

2000 to 2007, EIB-61, U.S. Dept. of Agri., Econ. Res. Serv., 

October 2009.
iii

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Summary

Food security, meaning consistent access by all people to adequate food for 

active, healthy living, is closely linked with the amount households spend for 

food. Annual ERS reports on household food security from 2000 to 2007 

indicate that median food spending by U.S. households grew more slowly 

than food prices over that period, which means that food spending by middleand low-income households actually declined after adjusting for infl ation. 

This report provides more detailed information on the characteristics of the 

decline in infl ation-adjusted food spending and examines associated changes 

in the food security of U.S. households.

What Is the Issue?

The decline in infl ation-adjusted food spending by middle- and low-income 

households over the past several years means that those households either 

reduced the quantity of food they purchased or that they purchased, on 

average, lower cost foods. Households with adequate resources may have 

reduced spending for “extras,” such as treats and convenience foods, with 

minimal impact on nutrition and health. However, reduced food spending by 

households whose food budgets were already stretched thin may have meant 

that some of those households could no longer purchase adequate food for 

active healthy lives for all household members. It is important for policymakers to understand whether the decline in infl ation-adjusted food spending 

over the last several years refl ected a deterioration in the food security of U.S. 

households and, if so, why food spending declined.

What Did the Study Find?

Data from two independent sources indicate that from 2000 to 2007, food 

spending by middle- and low-income households grew at a slower rate than 

food prices. Median food spending for all households declined by 12 percent 

relative to the rising cost of the Thrifty Food Plan and by 6 percent relative to the rising Consumer Price Index for Food and Beverages (CPIFB). 

Average CPIFB-infl ation-adjusted food spending declined by 6 percent for 

households with incomes below the 20th percentile, 16 percent for households 

with incomes in the 20th to 40th percentile, and 9 percent for households 

with incomes in the 40th to 60th percentile. However, average spending by 

all households remained nearly unchanged because spending increased for 

households with incomes above the 60th percentile. 

Over the same period, the national prevalence of very low food security—a 

severe range of food insecurity in which eating patterns of some household 

members are disrupted and their food intakes are reduced—increased from 

3.1 percent of households in 2000 to 4.1 percent in 2007. As with the decrease 

in food spending, the deterioration in food security was greatest for households with incomes in the 20th to 40th percentile, for which the prevalence 

of very low food security increased by about 50 percent. The declines in 

food spending by middle- and low-income households were accompanied by 

increases in spending for housing and, for households with incomes below the 

40th percentile, declines in total spending.
iv

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

These changes occurred during a period generally characterized by economic 

growth, falling unemployment, and moderate food price infl ation. In 2007, 

the latest year for which food security and food spending data are available, 

unemployment had just begun to rise and food price infl ation had begun to 

accelerate, but the larger changes associated with the recession of 2008 and 

2009 were yet to come.

How Was the Study Conducted?

The study used data from two nationally representative surveys, the Current 

Population Survey Food Security Supplement (CPS-FSS) and the Consumer 

Expenditure Survey (CES). The CPS-FSS is an annual survey conducted by 

the U.S. Census Bureau as a supplement to the monthly Current Population 

Survey. USDA sponsors the survey, and USDA’s Economic Research Service 

compiles and analyzes the responses. The CPS-FSS includes about 45,000 

households each year and is representative of the U.S. noninstitutionalized 

civilian population. The survey asks one adult respondent in each household 

a series of questions about household food spending, use of Federal and 

community food and nutrition assistance programs, and experiences and 

behaviors that indicate food insecurity.

The CES consists of two components—a quarterly interview survey and a 

diary survey—that provide information on expenditures, income, and demographic characteristics of U.S. consumers. The U.S. Census Bureau conducts 

the survey for the U.S. Bureau of Labor Statistics (BLS). Data from the two 

surveys are integrated to provide estimates of expenditures in over 80 subcategories of goods and services, aggregated into 14 major categories. This study 

used estimates published by BLS of food expenditures by pre-tax income 

percentiles from 2000 to 2007. 
1

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Introduction

Median spending for food by U.S. households grew more slowly than food 

prices from 2000 to 2007. Thus, median food spending actually declined 

after adjusting for food-price infl ation. Some households may have reduced 

food spending for “extras,” such as convenience foods and special treats, 

with minimal impact on nutrition and health. However, if households that 

were already struggling to put adequate food on the table reduced their food 

spending, they may no longer have been able to purchase the food needed to 

provide healthful, nutritious diets.

A household’s food security, meaning its consistent access to adequate food 

for active healthy living for all household members, is expected to be closely 

linked with the amount the household spends for food. In most households, 

the majority of food consumed by household members is purchased—either 

from supermarkets or grocery stores to be eaten at home, or from cafeterias, 

restaurants, or vending machines to be eaten outside the home. Households 

with adequate resources may spend considerably more for food than the 

minimum that would provide healthful, nutritious diets. On the other hand, 

if households with limited resources reduce food spending below some 

minimum level, various aspects of food insecurity, such as disrupted eating 

patterns and reduced food intake, may result. The amount a household spends 

for food, therefore, can provide insights into the degree to which the household is meeting its food needs. 

Previous research has documented the expected relationship between food 

spending and food security at the household level. ERS food security reports 

have consistently shown that, on average, food-secure households spend more 

for food than food-insecure households. In 2007, for example, the typical 

(i.e., median) food-secure household spent 35 percent more on food than the 

typical food-insecure household of the same size and age/sex makeup (Nord 

et al., 2008; see also appendix A for a more detailed description of this relationship and how it was analyzed). This report describes the relationship 

between national-level measures of food spending and food security over the 

period 2000-07. 
2

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Data Sources

ERS monitors food spending by U.S. households using several data sources. 

This study uses two such sources to help ensure confi dence in main trend 

estimates and to examine associations that are unique to each data source. 

The annual Current Population Survey Food Security Supplement (CPS-FSS) 

(see box, “Finding Out How Much Households Spend for Food”) provides 

data on household food expenditures and household food security. These data 

are used to describe changes in food spending and food security from 2000 to 

2007 at the national level and for subpopulations differing in income, demographic characteristics, and geographic locations. 

Household expenditure statistics compiled by the U.S. Bureau of Labor 

Statistics (BLS) using data from the Consumer Expenditure Survey (CES) 

(see box) provide information on household spending for food and for 13 

other categories of goods and services.1 These statistics provide insights into 

declining food expenditures by identifying categories of expenditures for 

which spending by low-income households increased and by quantifying 

changes in total spending by households. This information enables 

researchers to begin to answer the question of why food spending declined.

1Appendix B in this report compares 

food spending estimates based on 

the Current Population Survey Food 

Security Supplement with those based 

on the Consumer Expenditure Survey. 

The estimates are generally similar at 

the national level—within 3 percent 

from 2000 to 2006 and within 5 percent 

in 2007.
3

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Information on household food spending in this study comes 

from two data sources with complementary strengths. The 

Current Population Survey Food Security Supplement (CPSFSS) collects food spending data from the same households 

for which data on food security are collected. The Consumer 

Expenditure Survey (CES) collects information on spending 

for a wide range of goods and services, including food, and 

collects data using expenditure diaries as well as interviews 

to improve respondent recall. Annual national-level estimates 

of food spending based on the two surveys agree to within 5 

percent (see appendix B).

The CPS-FSS is an annual survey conducted by the U.S. 

Census Bureau as a supplement to the monthly Current 

Population Survey. USDA sponsors the survey, and ERS 

compiles and analyzes the responses. The CPS-FSS includes 

about 45,000 households each year and is a representative 

sample of the U.S. civilian population. The food security 

survey asks one adult respondent in each household a series 

of questions about household food spending, use of Federal 

and community food and nutrition assistance programs, and 

experiences and behaviors that indicate food insecurity.

Each respondent reports the amount his or her household 

usually spends for food each week after fi rst reporting 

details of the household’s actual food spending during the 

week prior to the interview. Respondents are asked about 

amounts spent for food (including any purchases made with 

food stamps) at:

• Supermarkets and grocery stores 

• Other places people buy food, such as meat markets, 

produce stands, bakeries, warehouse clubs, and 

convenience stores

• Restaurants, fast food places, cafeterias, and vending 

machines 

• Any other kind of place 

Total spending for food, based on responses to this series 

of questions, is verifi ed with the respondent, and the 

respondent is then asked how much the household usually

spends on food during a week. When the data are analyzed, 

the reported usual food spending is divided by the cost of the 

Thrifty Food Plan for that household (for the month in which 

the data were collected) to adjust for different food needs of 

households of different size and composition. 

The CES consists of two surveys—a quarterly interview 

survey and a diary survey—that provide information on 

expenditures, income, and demographic characteristics of 

U.S. consumers. The survey data are collected for the Bureau 

of Labor Statistics by the U.S. Census Bureau.

The interview survey is designed to obtain data on the 

types of expenditures respondents can recall for a period 

of 3 months or longer. These include relatively large 

expenditures, such as those for property, automobiles, and 

major durable goods, and those that occur on a regular basis, 

such as rent or utilities. Each consumer unit is interviewed 

every 3 months over fi ve calendar quarters. In the initial 

interview, information is collected on demographic and 

family characteristics and on the consumer unit’s inventory 

of major durable goods. Expenditure information is collected 

in the second through the fi fth interviews, and income and 

employment information is collected in the second and fi fth 

interviews. In the fi fth interview, a supplemental section is 

administered to account for changes in assets and liabilities 

over a 1-year period. 

The diary survey is designed to obtain data on frequently 

purchased smaller items, including food and beverages, both 

at home and in food establishments; housekeeping supplies; 

tobacco; nonprescription drugs; and personal care products 

and services. Respondents are asked to keep track of all 

their purchases made each day for two consecutive 1-week 

periods. Participants receive each weekly diary during a 

separate visit by a Census Bureau interviewer. 

Data from the two surveys are integrated to provide estimates 

of expenditures in over 80 subcategories of goods and 

services, aggregated into 14 major categories. When data 

are available from both survey sources, the more reliable of 

the two, as determined by statistical methods, is selected. 

CES-based statistics in this report are from the Bureau of 

Labor Statistics’ tables of current expenditures by quintiles 

of income before taxes.

Finding Out How Much Households Spend for Food
4

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Economic Context

This report covers the period from 2000 through 2007, the most recent 

year for which food security and food spending data are available. The U.S. 

economy grew throughout this period except for a two-quarter recession in 

2001. The national unemployment rate stood at 4 percent during 2000, rose 

to 6 percent in 2001, remained near 6 percent in 2002 and 2003, and then 

fell gradually over the following 3 years to about 4.5 percent in late 2006. 

Unemployment rose to 4.9 percent by late 2007, but the sharp increase associated with the recession of 2008 and 2009 occurred after the period covered 

by this report. The national poverty rate, which had declined from 15 percent 

in 1993 to 11.3 percent in 2000, increased to 12.7 percent in 2004, then fl uctuated around 12.5 percent in 2005-07.

Food prices, as measured by the Consumer Price Index for Food and 

Beverages (CPIFB), increased by 4 percent from 2006 to 2007. During the 

previous 6 years, food price infl ation averaged 2.6 percent annually, nearly 

the same rate as that for the overall Consumer Price Index (CPI) infl ation 

(2.7 percent). Higher-than-average food-price infl ation continued in 2008 

(5.5 percent), but that, too, occurred after the period covered by this report.
5

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Food Spending Declined for Households 

With Middle and Lower Incomes 

Infl ation-adjusted expenditures for food by the typical U.S. household 

declined from 2000 to 2007.2 Median food spending by U.S. households, 

expressed as a ratio to the cost of the Thrifty Food Plan,3 declined from 

1.36 in 2000 to 1.20 in 2007, a decline of 12 percent (fi g. 1). To derive 

these statistics, the amount each household usually spent for food (which 

is based on CPS-FSS data) was divided by the cost of the Thrifty Food 

Plan for that household to adjust for differences in household size and 

composition. Food spending expressed as a ratio to the cost of the Thrifty 

Food Plan also accounts for infl ation in the prices of the foods that make 

up the food plan because the cost of the food plan is updated each month 

for changes in food prices.4

Food spending by lower income households—those with incomes less than 

185 percent of the Federal poverty line—declined from 1.06 times the cost of 

the Thrifty Food Plan in 2000 to 0.95 in 2007, a decline of 10 percent. This 

decline may be of particular concern with respect to food security because 

the level fell from above to below the cost of the Thrifty Food Plan. Food 

budgets may already be stretched thin for households with spending near the 

cost of the Thrifty Food Plan. Reductions below that level are likely to result 

in lower quality and variety of diets for many households.

The decline in infl ation-adjusted food spending means that households 

reduced the quantity of food purchased or that they purchased, on average, 

lower cost food. Lower cost could refl ect lower dietary quality, less desirable 

taste, or less convenience, or it could refl ect more time and effort to fi nd lower 

priced products. The extent of the decline depends not only on the change in 

expenditures in current dollars but also on the mix of foods households typically purchased because prices changed at different rates for different types 

of food. Infl ation adjustments calculated from the cost of the Thrifty Food 

Plan and from the CPIFB are based on different assumptions about those 

2The earliest published food spending 

statistics using Current Population 

Survey Food Security Supplement data 

were based on the 2000 survey (Nord et 

al., 2002). BLS statistics based on the 

Consumer Expenditure Survey indicate 

that, prior to the period covered by this 

study, food spending by households in 

the second and middle income quintiles 

fl uctuated with little overall change 

from 1990 to 1998, and then peaked in 

2000. The 2000 peak coincided with 

the lowest poverty rate since the 1970s.

3The Thrifty Food Plan, developed 

by USDA, serves as a national standard 

for a nutritious, low-cost diet. It represents a set of “market baskets” of food 

that people in specifi c age and gender 

categories could consume at home to 

maintain a healthful diet that meets 

current dietary standards, taking into 

account the food consumption patterns 

of U.S. households. USDA calculates 

the cost of the Thrifty Food Plan for 

each age-gender category at average 

national prices and updates the costs 

each month to account for infl ation in 

food prices.

4The cost of the Thrifty Food Plan 

is adjusted for infl ation based on price 

changes in selected food components 

of the Consumer Price Index that 

approximate the makeup of the Thrifty 

Food Plan.

Figure 1

Median usual food spending as a ratio to the cost 

of the Thrifty Food Plan, 2000-07

Source: Prepared by USDA, Economic Research Service using Current Population 

Survey Food Security Supplement data.

Ratio to cost of Thrifty Food Plan

2000 2001 2002 2003 2004 2005 2006 2007

0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Income < 185 percent of poverty line

All households
6

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

food-purchasing patterns (see box, “How Much Did Food Prices—and Other 

Prices—Increase?”). The median food spending statistics published annually by ERS and described earlier were adjusted for infl ation in the cost of 

the Thrifty Food Plan, which is a “market basket” of foods that meets dietary 

standards for nutritious meals at low cost. The CPIFB represents changes 

in food prices of the average food basket purchased by all U.S. households. 

During the study period, prices rose more sharply for the foods that make up 

the Thrifty Food Plan than for other foods. From 2000 to 2007, infl ation in 

the cost of the Thrifty Food Plan was 28 percent, compared with 20 percent 

in the CPIFB. If median food spending by U.S. households, as reported in 

the CPS-FSS, is adjusted by the infl ation in the CPIFB rather than the cost 

of the Thrifty Food Plan, then the decline from 2000 to 2007 was 6 percent 

rather than 12 percent for all households and 5 percent rather than 10 percent 

for households with incomes less than 185 percent of the poverty line. 

Households attempting to provide healthy meals that meet dietary guidelines 

at a low cost would likely have been affected by the sharper price increases 

represented by the change in the cost of the Thrifty Food Plan. 

Food spending statistics based on the CES data, and adjusted for infl ation by 

the CPIFB, corroborate the decline in median food spending seen in the 

CPS-FSS. Average food spending by households in the middle income quintile declined by about 9 percent from 2000 to 2007, after adjusting for infl ation (fi g. 2).5 Average food spending by households in the second-lowest 

income quintile declined by about 16 percent. In the lowest income quintile, 

food spending increased from 2000 to 2001, and then declined to about 6 

percent below the 2000 level by 2007. (In 2007, annual average pretax 

income was $10,531 in the lowest income quintile, $27,674 in the second 

income quintile, and $46,213 in the middle income quintile.) Average food 

spending by all U.S. households remained relatively constant from 2000 to 

2007 because increased spending by higher income households offset the 

declines in the lower three income quintiles.6 Thus, the steadiness in national 

average food spending masks different trends in food spending by lower and 

higher income households.

5These statistics were adjusted for 

infl ation by the Consumer Price Index 

for Food and Beverages. The Consumer 

Expenditure Survey-based statistics are 

means (arithmetic averages) for households within each income quintile. The 

change for the middle-income quintile 

might be considered to represent the 

typical U.S. household, as does the 

median food spending for the entire 

population—the statistic reported from 

the Current Population Survey Food 

Security Supplement data.

6A third ERS statistical series on 

food expenditures, based on commerce 

surveys, indicates that per capita 

expenditures on food increased by 

7.3 percent, in constant dollars, from 

2000 to 2007 (USDA, ERS, 2009). 

That series includes food purchased 

by the military, businesses, school 

lunch programs, and institutions. Thus, 

it is not directly comparable with 

the Consumer Expenditure Survey 

and Current Population Survey Food 

Security Supplement statistics based on 

purchases by households.

Figure 2

Mean annual expenditures for food by pre-tax income quintile, 2000-07

(Adjusted to 2007 dollars by the Consumer Price Index for Food and Beverages)

Source: Prepared by USDA, Economic Research Service using expenditure statistics 

calculated by the U.S. Bureau of Labor Statistics from Consumer Expenditure Survey data.

Mean annual expenditures for food ($1,000)

2000 2001 2002 2003 2004 2005 2006 2007

0

2

4

6

8

All households

Middle income quintile

Second income quintile

Lowest income quintile
7

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Measures of price infl ation depend on the mix of goods and services considered, 

since prices of different goods and services may change at different rates. Three 

measures of price infl ation are used in this report to make household spending 

statistics comparable across years. The Consumer Price Index for Food and 

Beverages (CPIFB) represents the average “market basket” of foods and beverages 

purchased by U.S. households and was used in this study to adjust Consumer 

Expenditure Survey-based average food spending statistics. The Consumer Price 

Index for all goods and services (CPI-U) was used to adjust spending in all sectors 

(food and nonfood) to make comparisons across sectors. The CPIFB and CPI-U 

showed essentially identical infl ation from 2000 to 2007.

The prices of foods that make up the Thrifty Food Plan increased more rapidly than 

prices of other foods during the study period. The Thrifty Food Plan, developed 

by USDA, serves as a national standard for a nutritious low-cost diet. It represents 

a set of market baskets of food that people in specifi c age and sex categories 

could consume at home to maintain a healthful diet that meets current dietary 

standards, taking into account the food consumption patterns of U.S. households. 

The Thrifty Food Plan comprises, on average, more basic, less highly processed 

foods than those consumed by the average U.S. household. Households that were 

attempting to consume healthy, nutritious diets at low cost would likely have seen 

their average food prices increase by the larger increments registered by the cost 

of the Thrifty Food Plan.

How Much Did Food Prices—

and Other Prices—Increase?

Comparison of inflation from 2000 to 2007 as measured by the 

cost of the Thrifty Food Plan (TFP) for a family of four, the 

Consumer Price Index (CPI) for Food and Beverages, and the 

CPI for all goods and services (each series indexed to 2000)

Source: Prepared by USDA, Economic Research Service using data from USDA,

Center for Nutrition Policy and Promotion and the U.S. Bureau of Labor Statistics.

Ratio to value in 2000

2000 2001 2002 2003 2004 2005 2006 2007

1.0

1.1

1.2

1.3

1.4

1.5

Cost of TFP - family of four

CPI-Food and Beverages

CPI-U (all goods and services)
8

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Food Security Deteriorated

The recent declines in food spending by middle- and lower income households mirrored increased prevalence rates of food insecurity and very low 

food security. The prevalence of food insecurity increased from 10.5 percent 

of households in 2000 to 11.1 percent in 2007. The prevalence of very low 

food security—a severe range of food insecurity characterized by reduced 

food intake and disrupted eating patterns of some household members—

increased from 3.1 percent of households in 2000 to 4.1 percent in 2007.

Most higher income households can reduce food spending somewhat and still 

provide adequate diets for all household members. But for households with 

food budgets already stretched thin, reducing food expenditures often means 

compromising diet quality and variety and, in some cases, adequate food 

intake. The prevalence of very low food security in the lowest income quintile 

increased from 10.1 percent in 2000 and 2001 to 12.6 percent in 2007 (fi g. 3). 

In the second lowest income quintile, the prevalence of very low food security increased by about half, from 3.9 percent in 2000 to 5.8 percent in 2007. 

Households in the middle income quintile were more nearly able to maintain 

adequate food access even with reductions in food spending, and registered 

only a small increase in the prevalence of very low food security.

Figure 3

Prevalence of very low food security by pre-tax household 

income quintile, 2000-07

Source: Prepared by USDA, Economic Research Service using Current Population 

Survey Food Security Supplement data.

Prevalence of very low food security (Percent of households)

2000 2001 2002 2003 2004 2005 2006 2007

0

2

4

6

8

10

12

14

Lowest income quintile

Second income quintile

Middle income quintile
9

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Declines in Food Spending and 

Food Security Were Not Concentrated 

in Specifi c Types of Households

Both reduced spending for food and increased prevalence of very low 

food security were seen in households with a variety of demographic and 

economic characteristics and in all regions of the country (table 1, fi g. 4, and 

fi g. 5). Food spending declined in all categories analyzed. Declines ranged 

from 10 to 16 percent in all but three categories, and the decline was remarkably lower only for elderly living alone (5.4 percent).

The percentage of households with very low food security increased in all 

categories analyzed. The increases were greatest for households with incomes 

below the poverty line (2.2 percentage points) and between the poverty line 

and 185 percent of the poverty line (3.6 percentage points). Aside from the 

association with income, the increased prevalence of food insecurity was 

not heavily concentrated in any subpopulation. Increases were, however, 

somewhat above the national average (1.0 percentage point) for Hispanic 

households (1.8 percentage points) and for households in the Midwest (1.6 

percentage points). 
10

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Table 1

Changes in food spending and very low food security, 2000-07

 Food spending Very low food security

 

 Change, Change,

Characteristic 2000 2007 2000-07 2000 2007 2000-07

 Percentage 

 Ratio Percent Percent of households points

All households 1.36 1.20 -11.8 3.1 4.1 1.0

Household composition:

Married couples with children 1.25 1.09 -12.8 1.9 2.7 0.8

Single women with children 1.11 0.98 -11.7 9.0 10.3 1.3

Single men with children 1.19 1.00 -16.0 3.9 5.2 1.3

More than one adult, no child 1.41 1.23 -12.8 1.9 2.7 0.8

Women living alone 1.46 1.27 -13.0 4.0 5.3 1.3

Men living alone 1.74 1.47 -15.5 4.2 5.1 0.9

With elderly 1.27 1.13 -11.0 1.5 2.4 0.9

Elderly living alone 1.30 1.23 -5.4 1.9 2.8 0.9

Race/ethnicity of households:

White non-Hispanic 1.42 1.27 -10.6 2.4 3.1 0.7

Black non-Hispanic 1.16 1.02 -12.1 6.5 7.7 1.2

Hispanic1 1.20 1.01 -15.8 4.8 6.6 1.8

Other non-Hispanic 1.32 1.11 -15.9 2.8 3.7 0.9

Household income-to-poverty ratio:

Under 1.00 0.98 0.90 -8.2 12.7 14.9 2.2

1.00 to 1.85 1.11 0.97 -12.6 4.9 8.5 3.6

1.85 and over 1.52 1.31 -13.8 1.2 1.9 0.7

Area of residence relative to metropolitan 

 statistical area (MSA):2

In principal city of MSA 1.43 1.23 -14.0 4.3 5.0 0.7

In suburbs or outlying areas of MSA 1.45 1.26 -13.1 2.3 3.1 0.8

Not in MSA (i.e., nonmetropolitan) 1.17 1.02 -12.8 3.4 4.3 0.9

Census geographic region:

Northeast 1.41 1.23 -12.8 2.7 3.5 0.8

Midwest 1.32 1.12 -15.2 2.6 4.2 1.6

South 1.32 1.20 -9.1 3.4 4.3 0.9

West 1.47 1.25 -15.0 3.5 4.1 0.6

1Hispanics may be of any race.

2Metropolitan Statistical Areas are defi ned by the U.S. Offi ce of Management and Budget. Defi nitions changed somewhat between 2000 and 

2007, so statistics based on MSA residence are only approximately comparable. The category “In principal city of MSA” refers generally to households within the incorporated areas of the largest city or cities in an MSA. The category “in suburbs or outlying areas of MSA” refers to households 

outside of the principal city but in surrounding counties (or towns in New England) that are densely populated and linked to the principal city by 

substantial daily commuting.

Source: Prepared by USDA, Economic Research Service using Current Population Survey Food Security Supplement data.

Median usual food 

spending to cost of 

Thrifty Food Plan Prevalence
11

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Figure 4

Median usual household food expenditures relative to the cost

of the Thrifty Food Plan, 2000 and 2007

MSA = Metropolitan Statistical Area.

Source: Prepared by USDA, Economic Research Service using Current Population 

Survey Food Security Supplement data.

Ratio of food spending to cost 

of Thrifty Food Plan

2007

2000

West

South

Midwest

Northeast

Census geographic region:

Not in MSA (i.e., nonmetropolitan)

In suburbs or outlying areas of MSA

In principal city of MSA

Area of residence:

1.85 and over

1.00 to 1.85

Under 1.00

Household income-to-poverty ratio:

Other non-Hispanic

Hispanic

Black non-Hispanic

White non-Hispanic

Race/ethnicity of households:

Elderly living alone

With elderly

Men living alone

Women living alone

More than one adult, no child

Single men with children

Single women with children

Married couples with children

Household composition:

All households

0 0.5 1.0 1.5 2.0
12

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Figure 5

Prevalence of very low food security by household characteristics, 

2000 and 2007

MSA = Metropolitan Statistical Area.

Source: Prepared by USDA, Economic Research Service using Current Population 

Survey Food Security Supplement data.

Very low food security (percent of households)

2007

2000

West

South

Midwest

Northeast

Census geographic region:

Not in MSA (i.e., nonmetropolitan)

In suburbs or outlying areas of MSA

In principal city of MSA

Area of residence:

1.85 and over

1.00 to 1.85

Under 1.00

Household income-to-poverty ratio:

Other non-Hispanic

Hispanic

Black non-Hispanic

White non-Hispanic

Race/ethnicity of households:

Elderly living alone

With elderly

Men living alone

Women living alone

More than one adult, no child

Single men with children

Single women with children

Married couples with children

Household composition:

All households

0 2 4 6 8 10 12 14 16

2007 average
13

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Households Spent More on Housing

The amount households spend for food depends on their total disposable 

income (and to some extent on their ability to borrow or to draw down assets) 

and on competing demands for spending on other goods and services. Thus, 

changes in food spending can refl ect changes in prices of, or demand for, 

other goods and services as well as changes in food prices and income. To 

compare changes in spending for food with changes in spending for other 

categories of goods and services, expenditures were adjusted for infl ation 

by the Consumer Price Index for all categories of goods and services (CPIU). This results in only a slight difference from the statistics adjusted by the 

CPIFB because the two series show almost identical total infl ation from 2000 

to 2007 (see box on page 7).

The decline in food spending from 2000 to 2007 by middle- and low-income 

households was accompanied by increased spending for housing and, for 

households in the lowest two income quintiles, by declines in overall expenditures. In the lowest income quintile, food spending (adjusted for infl ation) 

declined by 5.7 percent from 2000 to 2007 (table 2). Over the same period, 

spending for housing increased by 5.7 percent, spending in all other categories declined, and total spending declined by 5.2 percent. 

The impact of these changes on total household spending is represented by 

expressing the change in each expenditure category as a percent of total spending 

(for all goods and services) in the base year, 2000. Expressed thus, the individual 

category changes add to the total change in expenditures. For example, the 

5.7-percent decline in food spending by households in the lowest income quintile 

represented a decline in total spending of 0.8 percent. The increase in spending 

Table 2

Changes in expenditures by category and income from 2000 to 2007 (adjusted for infl ation)1 

 Change from 2000 to 2007 as a percentage Change from 2000 to 2007 as a percentage

 of spending in the category in 2000 of total spending in all categories in 2000

 Lowest income Second income Middle income Lowest income Second income Middle income

Category quintile quintile quintile quintile quintile quintile

Food -5.7 -15.3 -9.0 -0.8 -2.4 -1.3

 Food at home -8.8 -17.7 -10.2 -.9 -1.8 -.9

 Food away from home +0.9 -10.7 -7.2 0.0 -.6 -.4

Housing +5.7 +11.5 +10.1 +2.1 +3.7 +3.1

 Shelter +10.0 +18.0 +12.0 +2.1 +3.2 +2.2

 Utilities +6.1 +11.1 +16.2 +.6 +.9 +1.1

 Other housing2 -8.9 -6.5 -2.2 -.6 -.4 -.1

Apparel and services -24.7 -33.5 -14.9 -1.2 -1.6 -.7

Transportation -16.2 -5.8 -6.3 -2.9 -1.1 -1.3

Health care -16.7 +2.3 +19.5 -1.4 +.2 +1.1

Entertainment -8.1 +9.0 +11.0 -.4 +.4 +.5

Other -4.8 -9.8 +.6 -.6 -1.6 +.1

Combined (all categories) -5.2 -2.6 +1.5 -5.2 -2.6 +1.5

Pre-tax income -5.5 -3.6 -1.7 -5.5 -3.6 -1.7

1Changes were adjusted for infl ation based on the Consumer Price Index (CPI-U) for “all items.”

2Other housing includes personal services, housekeeping supplies, and household furnishings and equipment.

Source: Prepared by USDA, Economic Research Service based on expenditure statistics calculated from Consumer Expenditure Survey

data by the U.S. Bureau of Labor Statistics, and income statistics from the U.S. Census Bureau (DeNavas-Walt et al., 2008).
14

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

for housing, which was also 5.7 percent, represented a larger percentage increase 

in total spending (2.1 percent) because housing is a larger share of total spending 

than food. For households in the lowest income quintile, transportation registered 

the sharpest decline as a share of spending in 2000 (2.9 percent).

In the second and middle income quintiles, declines in food spending and 

increases in spending for housing were larger than in the lowest income quintile. Food spending declined by 15.3 percent in the second income quintile 

and by 9.0 percent in the middle income quintile, representing declines of 2.4 

and 1.3 percent, respectively, in total spending. Increases in housing expenditures more than offset the declines in food spending, increasing by 3.7 and 3.1 

percent of total spending in the second and middle income quintiles, respectively. In the second income quintile, spending in all other categories either 

declined or increased by only small amounts, and total spending declined by 

2.6 percent. In the middle income quintile, total spending increased by 1.5 

percent; the largest absolute changes, along with food and housing, were a 

decline in transportation and an increase in health care.

The declines in overall expenditures in the two lowest income quintiles are 

consistent with declines in income as reported in the Annual Social and 

Economic Supplement to the Current Population Survey, the Nation’s premier 

source of data on income and poverty. From 2000 to 2007, pretax income 

declined by 5.5 percent in the lowest income quintile and by 3.6 percent 

in the second income quintile (DeNavas-Walt et al., 2008). Income in the 

middle income quintile also declined slightly (1.7 percent), although total 

expenditures increased by 1.5 percent. 

A large majority of the increased spending for housing was for the shelter 

component (essentially rental and mortgage payments). Spending for utilities also increased, accounting for one-quarter to one-third of the increases 

in total spending for housing. Further disaggregation (not shown) indicates 

that the increase in the shelter subcategory represented primarily an increase 

in rent in the lowest income quintile and increases in mortgage costs in the 

second and middle income quintiles. The increase in mortgage costs probably refl ects, in part, increases in home prices and the increasing availability 

of housing-related credit during the study period. Home values more than 

doubled in nominal terms from 2000 to 2007 (Standard and Poor, 2009), 

and housing expenditures, as reported by BLS, include interest on mortgages, 

home equity loans, and lines of credit secured by the home. 
15

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Conclusions

The combined evidence of declining food spending and increasing food insecurity in middle- and low-income households from 2000 to 2007 points to an 

increasing number of U.S. households struggling to put adequate food on the 

table during that period. This occurred during years generally characterized 

by economic growth. Food-access diffi culties are likely to have been exacerbated by the economic downturn that began in 2008.

Two main factors may account for the declines in food spending by middleand low-income households. Spending for housing increased substantially in 

all three of the lowest income quintiles. And, in the two lowest income quintiles, income and total spending declined.

Changes in both food spending and very low food security were greatest in 

the second-lowest income quintile, in which spending for food declined by 

16 percent and the prevalence of very low food security increased by about 

half. Most households in this income range can be characterized as working 

households with low income. Incomes of almost all households in the second 

income quintile are above the poverty line, and one or more adults are 

employed full time in a large majority of the households. Few households in 

this income range are eligible for food and nutrition assistance programs.
16

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

References

DeNavas-Walt, Carmen, Bernadette D. Proctor, and Jessica C. Smith. 2008. 

Income, Poverty, and Health Insurance Coverage in the United States: 

2007, U.S. Census Bureau, Current Population Reports, P60-235.

Nord, Mark, Margaret Andrews, and Steven Carlson. 2008. Household Food 

Security in the United States, 2007, Economic Research Report No. 66, 

U.S. Department of Agriculture, Economic Research Service, www.ers.

usda.gov/publications/err66/

Nord, Mark, Nader Kabbani, Laura Tiehen, Margaret Andrews, Gary Bickel, 

and Steven Carlson. 2002. Household Food Security in the United States, 

2000, Food Assistance and Nutrition Research Report No. 21, U.S. 

Department of Agriculture, Economic Research Service, www.ers.usda.

gov/publications/fanrr21/

Oliveira, Victor, and Donald Rose. 1996. Food Expenditure Estimates From 

the 1995 CPS Food Security Supplement: How Do They Compare With 

the Consumer Expenditure Survey? Staff Report No. AGES9617, U.S. 

Department of Agriculture, Economic Research Service.

Standard and Poor. 2009. “Standard and Poor/Case-Shiller Home Price 

Indices (composite index of 20 Cities),” http://www2.standardandpoors.

com/portal/site/sp/en/us/page.topic/indices_csmahp/2,3,4,0,0,0,0,0,0,0,1,

0,0,0,0,0.html, downloaded June 30, 2009.

U.S. Department of Agriculture, Economic Research Service (USDA, ERS). 

2009. Food CPI and Expenditures Briefi ng Room: Table 13 (Per capita 

food expenditures), www.ers.usda.gov/briefi ng/cpifoodandexpenditures/

data/expenditures_tables/table13.htm, accessed June 29, 2009.
17

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Appendix A—Relationship Between Food 

Spending and Food Security at the 

Household Level

Underlying the population-level trends over time described in this report is 

the household-level relationship between food spending and food security. 

ERS food security reports have consistently shown that, on average, foodsecure households spend more for food than food-insecure households (Nord 

et al., 2008). Analysis of the food security of households relative to their 

food spending sheds light on this relationship. Households surveyed in the 

Current Population Survey Food Security Supplement from 2000 to 2007 

were grouped into narrow ranges of food spending relative to the cost of the 

Thrifty Food Plan, and within each range, the prevalence of food insecurity 

and very low food security and the mean food spending relative to the cost of 

the Thrifty Food Plan were calculated.

Food insecurity fell from around 20 percent of households with food 

spending in the lowest range to about 5 percent for households that spent 

twice the cost of the Thrifty Food Plan, then changed little as food spending 

increased further (fi g. A-1). Very low food security also fell until the point 

at which households were spending about twice the cost of the Thrifty Food 

Plan, then leveled off at around 2 percent as food spending increased further. 

Several factors may account for food insecurity not falling further with 

increased food spending beyond twice the cost of the Thrifty Food Plan. 

For example, income and employment change through the year for some 

households. Reported food spending may refl ect recent or usual conditions, 

whereas the food security measure is designed to register even brief spells 

of food insecurity that may have occurred rarely or earlier in the year. This 

hypothesis is supported by the low prevalence of food insecurity and nearzero prevalence of very low food security for higher income households 

(annual incomes higher than three times the poverty line) with food spending 

higher than twice the cost of the Thrifty Food Plan (analysis not shown).

Figure A-1

Prevalence of food insecurity and very low food security by food 

spending relative to the cost of the Thrifty Food Plan, 2000-07

Source: Prepared by USDA, Economic Research Service using Current Population 

Survey Food Security Supplement data.

Percent of households

0

5

10

15

20

25

012345

Usual food spending (ratio to cost of Thrifty Food Plan)

Insecure

Very low food security
18

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

Appendix B—Comparison of Household 

Food Expenditure Estimates From the Current 

Population Survey Food Security Supplement 

and the Consumer Expenditure Survey

The two surveys that provided data used in this report use different methods 

to collect information on how much households spend for food. The CPS-FSS 

uses a somewhat simplifi ed method adapted from the CES and collects information on spending only for food. The CES collects information on spending 

for all goods and services, using a series of fi ve quarterly surveys supplemented with weekly expenditure diaries for 2 consecutive weeks. 

Food expenditure estimates from the initial CPS-FSS, conducted in 1995, 

were found to be consistent with estimates based on CES data (Oliveira and 

Rose, 1996). In this appendix, estimates from the two surveys are compared 

for the period 2000-07.

In each year through 2006, CPS-FSS-based estimates of mean expenditures 

for food by all households were within 3 percent of CES-based estimates (fi g. 

B-1). On average, CPS-FSS annual estimates were 0.7 percent lower than the 

corresponding CES estimates. The CPS-FSS understatement relative to CES 

was somewhat larger (5 percent) in 2007.

Estimates by income quintile, however, indicate that, relative to the CES, 

CPS-FSS understates food spending by higher income households and overstates food spending by lower income households (fi g. B-2). Estimates for 

the middle income quintile differed only slightly between the two surveys. 

Differences in how food spending is reported and differences in the accuracy 

of income reporting could contribute to these discrepancies. A comparison 

of mean household-income estimates across income quintiles (analysis not 

Figure B-1

CPS-FSS and CES mean annual expenditures for food 

by all households, 2000-07

Source: CPS-FSS statistics were calculated by USDA, Economic Research Service using 

Current Population Survey Food Security Supplement data; CES statistics were calculated 

by the U.S. Bureau of Labor Statistics using Consumer Expenditure Survey data.

Current dollars (thousands)

2000 2001 2002 2003 2004 2005 2006 2007

0

1

2

3

4

5

6

7

8

CES

CPS-FSS
19

Food Spending Declined and Food Insecurity Increased for Middle-Income and Low-Income Households From 2000 to 2007 / EIB-61

Economic Research Service/USDA

shown) suggests that about half of the discrepancy could result from less 

precise income information in the CPS-FSS, which results in less accurate 

classifi cation by income quintile. The remainder of the discrepancy likely 

refl ects differences in how food spending is reported or differences in 

sampling between the two surveys (see box on page 3). ERS use of medians 

rather than means to summarize food spending data from the CPS-FSS 

would tend to reduce distortions due to less accurate reporting by households 

with spending much higher or lower than the true median.

Figure B-2

CPS-FSS and CES mean annual expenditures for food by all households, by quintile of pretax income, 2000-07

Source: CPS-FSS statistics were calculated by USDA, Economic Research Service using 

Current Population Survey Food Security Supplement data; CES statistics were calculated 

by the U.S. Bureau of Labor Statistics using Consumer Expenditure Survey data.

Current dollars (thousands)

2000 2001 2002 2003 2004 2005 2006 2007

0

2

4

6

8

10

12

Highest quintile, CES

Highest quintile, CPS-FSS

Fourth quintile, CES

Fourth quintile, CPS-FSS

Middle quintile, CES

Middle quintile, CPS-FSS

Second quintile, CES

Second quintile, CPS-FSS

Lowest quintile, CES

Lowest quintile, CPS-FSS