One third of inflation-ravaged U.S. households are skipping meals or cutting portion sizes, and two thirds are strapped for cash, a survey says ahead of midterms elections, with Louisiana and Oklahoma the worst hit

  • Americans say inflation at grocery stores is higher than official 13.5 percent rate 
  • 31 percent of households have skipped or cut the size of their meals this past year because they didn't have enough food
  • 18 percent said they do not get enough to eat 
  • Two thirds said they would struggle to raise $400 in a crisis
  • Louisiana and Oklahoma are the worst-affected states
  • Everyday basics like eggs, milk and margarine have rocketed up in price 
  • Cash-strapped consumers are switching to 'dollar stores' 

One third of households are skipping meals or reducing the size of portions and nearly two thirds would struggle to raise $400 quickly, according to a study on months of runaway inflation hurting everyday Americans.

Consumer data firm Dunnhumby says shoppers increasingly feel the pain of rising grocery store prices, which many respondents said was far higher than the official 13.5 percent rate recorded by the Bureau of Labor Statistics.

Food insecurity is on the rise across the country, researchers found, with 18 percent of the survey's roughly 2,000 participants saying they were not getting enough food to eat.

Another 31 percent of households have skipped or cut the size of their meals this past year because their cupboards were bare – a 5 percent rise since the last time they were asked in May and June.

Millions of Americans also lack a financial safety net, researchers found. Some 64 percent said they would not be able to raise $400 in a pinch – a 4 percent rise compared to five months ago.

The results varied across states that took part in the study. Only 42 percent of Wisconsin residents said they would struggle to raise the cash quickly, compared to 77 of people in Louisiana and Oklahoma.

A customer shops for eggs at a grocery store in Houston, Texas. Eggs jumped in price by nearly 40 percent in the year to August as inflation hist consumers in the wallet

A customer shops for eggs at a grocery store in Houston, Texas. Eggs jumped in price by nearly 40 percent in the year to August as inflation hist consumers in the wallet 

As a result, consumers are walking with their wallets. Since April-May, shoppers have shifted 2.1 percent of their spending to low-cost ‘dollar stores’, while cutting spending by 1.1 percent at luxury stores, researchers said.

Grant Steadman, Dunnhumby’s regional president, said while ‘inflation may be dampening’ across parts of the economy, grocery checkout prices have held high and ‘consumers are responding by changing their shopping behavior’.

‘Perhaps most troublingly, nearly a third are cutting back or completely eliminating some meals,’ Steadman added, following the survey of some 2,000 consumers. 

The survey comes as Americans faced another month of economic hardship, and while average gas prices have dipped to $3.79 per gallon, the pain is being increasingly felt by shoppers at grocery store checkouts.

The data also come 35 days before the midterm elections, when voters will decide which party will control Congress for the next two years of Joe Biden’s presidency, and many say the economy is foremost in their mind.

U.S. consumer prices unexpectedly rose in August, with an 8.3 percent increase against the previous year, and underlying inflation accelerated amid rising costs for rents, healthcare and food.

According to the Labor Department’s Consumer Price Index, the overall cost of food rose 11.4 percent, with the food-at-home category, groceries, up 13.5 percent – the steepest rises since the late 1970s.

Jesus Montiel, Krista Mason and their daughter Diana, 2, spend time together at their home in Afton, Wyoming, where inflation has made it even harder for working parents to run a household

Jesus Montiel, Krista Mason and their daughter Diana, 2, spend time together at their home in Afton, Wyoming, where inflation has made it even harder for working parents to run a household 

Shoppers have noticed the steep increase in the cost of eggs, which jumped nearly 40 percent in the year to August — meaning the price of a dozen rose from $4.63 to as much as $7.69 in some stores.

Other pantry staples that have seen big price hikes include milk (which rose 17 percent in the year to August), oranges (14 percent), roasted coffee (18.7 percent), margarine (38.3 percent) and breakfast cereals (23.3 percent).

As well as watching prices trend upwards, many shoppers have taken to social media to complain about ‘shrinkflation’ — manufacturers reducing the size of their products and not cutting prices.

Others have noted that the price of foods has jumped in grocery stores (13.5 percent) while eatery bills have risen by on average 8 percent, the Labor Department says — making restaurants relatively more affordable.

Supermarket prices have risen faster because they’re more directly impacted by rising food costs and global supply chain issues. In eateries, the cost of ingredients is only a small part of the total bill.

According to SellCell, which also tracks consumer data, millions of cash-strapped Americans are cutting back on luxuries, entertainment, grocery shopping, switching off electrical appliances and scouring for new sources of income amid the economic squeeze. 

Nearly half of Americans say they are cutting back on movies, shows and other forms of entertainment to make ends meet, while 41.5 percent will stop eating at restaurants or ordering takeaways.

Millions are looking for ways to make money, researchers said. Nearly a fifth of respondents were looking for a second job and more than a tenth are selling old televisions, computers and other technology gear to raise cash.

Polling from KFF, The Wall Street Journal, NBC News and others show that inflation and gas prices were important to voters in the upcoming midterms, which will determine which party controls Congress.

Gun violence, abortion access and prescription drug costs were also top concerns.

A shopper holds groceries while waiting to check out at a grocery store in San Francisco, California, as inflation forces millions of households to cut back on everyday basics

A shopper holds groceries while waiting to check out at a grocery store in San Francisco, California, as inflation forces millions of households to cut back on everyday basics