Americans are now spending 11 percent of their disposable income on food and groceries—a record high since 1991. The high altitude in food prices has been hard to sustain for many people in this country. Those hardest hit are lower-income households, which spend a higher proportion of their wages on food, but soaring grocery bills have affected many others also. 78 percent of Americans are living paycheck to paycheck, after all, according to Dave Ramsey.
Just how high are today’s food prices, as compared to previous years? Overall food prices increased by 25 percent between the years 2019 and 2023. As further context, it may help to know that the 20-year average inflation rate on food is 2.5 percent annually, based on data from the U.S. Department of Agriculture.
Those most impacted by this drastic inflation in the cost of food may wonder when relief will come. The financial insecurity and anxiety about feeding one’s family can take a toll on mental health. This is evidenced by at least three potential effects of high food prices: a scarcity mindset, poorer nutrition, and food insecurity.
A Scarcity Mindset
Unprecedently high and rising food prices are more likely to contribute to a scarcity mindset, or the view that resources are limited and that you don’t have enough. Someone with a scarcity mindset may say, “I won’t have enough money to put food on the table,” or “We won’t have enough groceries to make it through the week,” and they may come to this conclusion justifiably.
A scarcity mindset can also significantly affect a person’s mental health, research has found. The nagging sense of never having enough and worries about more inflation yet to come can cause anxiety and/or depression, strain relationships, and lead to low self-esteem and risky behaviors.
A scarcity mindset can also cause a person to focus solely on the present moment, rather than also thinking about the long-term effects of their decisions.
Poorer Nutrition
There can be a trade-off between nutrition and higher grocery bills. Studies have shown how the growing burden of putting food on the table can negatively affect people’s diet and compromise their nutritional health.
Poorer nutrition can, in turn, hurt mental health. For example, diets high in processed foods, which are often more affordable, increase the risks of depression and are linked to ADHD and mild cognitive dysfunction. Inadequate nutrition in general can amplify the negative mental health effects of stress.
Food Insecurity
“Food insecurity” is the state of not having access to enough food or food that is safe and nutritious. Research has revealed a strong link between food insecurity and anxiety and depression, and, depending on the severity, psychological distress.
Soaring inflation in food prices and runaway grocery bills inevitably mean that more and more people will be affected by a scarcity mindset, poorer nutrition, and/or food insecurity. The fact that these issues adversely affect people’s mental health is one more reason to take them seriously.