As of August 2024, the percentage of income that Americans spend on food remains one of the lowest compared to the developed global countries. In the United States, the average household spends approximately 6.4% of its income on food. This is the lowest percentage globally, closely followed by Singapore at 6.7% and other developed nations such as the UK (8.2%) and Switzerland (8.7%).
From last 3 months there has been a growing chorus of frustration among Americans regarding the escalating cost of food. Shoppers have voiced their worries as food prices continue to climb, consistently outpacing the overall rate of inflation. The U.S. Department of Agriculture (USDA) has observed that, although the surge in food prices has slowed since the peak inflation periods, they are still increasing at rates above historical norms. This ongoing rise is putting a significant strain on household finances, with many consumers increasingly feeling the impact of higher grocery bills.
The low percentage in the U.S. can be attributed to higher average incomes and a highly efficient food system that keeps food prices relatively low. This trend has been consistent over the years, from 2000 to 2019, the share of disposable income spent on food remained steady around 10%, despite fluctuations in food prices and economic conditions.
In contrast, countries with lower levels of economic development tend to spend a much larger share of their income on food. For instance, in Nigeria, households spend over 56% of their income on food, and several other countries in Africa and Asia also allocate over 40% of their household income to food. These disparities underline the economic challenges faced by lower-income countries, where food represents a more significant burden on household finances.
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