A new report by think tank the Urban Institute shows that almost 20% of shoppers ages 18 to 64 used their savings to pay for groceries last year.
The data comes from the Urban Institute’s Well-Being and Basic Needs survey, which also revealed 63.2% of consumers used a credit card to pay for food. Over half paid the bill in full, while more than three in 10 paid less than the full balance but made the minimum payment for the month. Just under 14% did not always make the minimum payment for the credit card, accounting for 8.7% of total respondents, up from 7.1% in 2023.
The survey also showed almost 10% used buy now, pay later options to pay for groceries, and one-third missed payments last year.
The cost of food has increased 32% over the last five years, according to the Urban Institute, and affordability took another hit when Congress changed Supplemental Nutrition Assistance Program (SNAP) guidelines recently with the passage of the One Big Beautiful Bill Act.
Effective Feb. 1, SNAP benefits now face new work requirements for eligibility. The new requirements also stipulate that people who do not meet the criteria can collect SNAP benefits for no more than three months in any three-year period.
On Tuesday, the Bureau of Labor Statistics announced food-at-home prices increased in June for the fifth time this year. Grocery prices rose 0.2% month over month, a slightly higher increase than in May, when they increased 0.1%. For the year, April holds the record for the highest increase at 0.7%, while March is the only month where food-at-home prices fell 0.2%. Year over year, the index for food at home rose 2.7%.