Media Contact: Jennifer Adach, Communications Coordinator, (202) 986-2200 x3018, jadach@frac.org

FRAC Media Release

Rising Food Costs Bearing Down Even Harder on Low-Income Shoppers
Increase in the Cost of the Thrifty Food Plan Rising Faster than the Overall Cost of Food

Washington, D.C. – May 29, 2008 – While the cost of food in the general Consumer Price Index rose by 5.1 percent from April 2007 to April 2008, the cost of the Thrifty Food Plan (the mix of food items on which low-income people rely) rose even faster. Over the same time period, the cost of the Thrifty Food Plan rose by 7.2 percent.

This increase in the Thrifty Food Plan is a more accurate indicator of how low-income households are suffering from rising food costs, because the Thrifty Food Plan is USDA's estimate of what it costs to purchase a minimally adequate diet. The Thrifty Food Plan is the least expensive market basket of food the government prices – and recommends for short-term use.

The especially rapidly rising cost of the Thrifty Food Plan means that low-income families are struggling even harder to keep hunger at bay. The Farm Bill nutrition title, which Congress recently enacted, will provide help in the medium and long-term, but it is essential that the next economic stimulus bill include a temporary boost in food stamp benefits to help families struggling with rapid Thrifty Food Price increase.

The cost of the Thrifty Food Plan for a family of four is $39 more per month than it was a year ago – that's the equivalent of an extra day of work each month at the minimum wage at a time when most low-income families are already working two or three jobs, and when employers are cutting back on hours, not offering more.

Background on the Thrifty Food Plan
The Thrifty Food Plan is unrealistic for even the thriftiest food shopper – it assumes that they have an in-depth knowledge about nutrition and how to select the healthiest items for the least amount of money, and that they have enough time to prepare most meals from scratch. Those working low-wage jobs with long hours are not just short on money but on time as well. The Thrifty Food Plan also assumes that people are able to buy food in bulk, a particular challenge for those lacking reliable transportation to stores or for those lacking a large-scale supermarket in their community.

The Thrifty Food Plan serves as the government’s basis for Food Stamp allotments. But, studies have shown that the food stamp benefit based on the Thrifty Food Plan is not sufficient for most recipients to be able to purchase the food package in stores in their neighborhoods. For example, researchers in Boston reported that the actual cost of the Thrifty Food Plan exceeded the maximum food stamp allotment in both the small and large stores. Averaging across all stores, the maximum food stamp allotment fell short by almost $27 per month for a family of four.