Food expenditure and nutrional quality over the Great

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Food expenditure and nutritional quality,over the Great Recession 1. Rachel Griffith Martin O Connell and Kate Smith,Institute for Fiscal Studies. The Institute for Fiscal Studies November 2013,ISBN 978 1 909463 27 1. Executive summary, Real wages have declined and unemployment has increased since the. beginning of the recession in 2008 squeezing households budgets. There has also been a substantial increase in the price of food relative. to other goods, How households food purchasing behaviour responded is of interest.
both because food is a large share of households total spending. around 17 5 on average and because changes in food purchasing. behaviour can have important implications for diet We are able to. study this exploiting very detailed data on a set of households food. purchases through time, British households have cut real expenditure on food brought into the. home Real expenditure on food is nominal expenditure on food. divided by the food component of the consumer price index. They have reduced the amount of calories they buy and substituted to. cheaper food The reduction in calories was less than the reduction in. real expenditure, The authors gratefully acknowledge financial support from the European Research. Council ERC under ERC 2009 AdG grant agreement number 249529 and the. Economic and Social Research Council ESRC under grant number ORA ES I012222 1. Institute for Fiscal Studies 2013, Comparing the years before the recession 2005 07 with 2008 09. households on average, reduced real expenditure on food purchases brought into the home. reduced calories purchased by 1 8,spent 2 1 less per calorie.
Comparing the years before the recession 2005 07 with 2010 12. households on average, reduced real expenditure on food purchases brought into the home. reduced calories purchased by 3 6,spent 5 2 less per calorie. Households with young children reduced real expenditure calories and. real expenditure per calorie more on average than other household. These changes coincided with an increase in the calorie density of. foods as households switched to foods with more calories per. The nutritional quality of the foods that households purchased also. changed a number of measures show a reduction in quality on. average over this period, All of these measures suggest that pensioner households single. parent households and households with young children saw the largest. declines in the nutritional quality of the foods purchased between. 2005 07 and 2010 12, This decline in the average nutritional quality of foods purchased was. primarily driven by a substitution towards processed sweet and. savoury food and away from fruit and vegetables Households. substitution within each of 11 broad food groups when taken. individually acted to improve nutritional quality on average. On average all household types moved away from calories from fruit. and vegetables with the largest switches away being by households. with young children and single parent households,Institute for Fiscal Studies 2013.
1 Introduction, The recent economic crisis now referred to as the Great Recession has led. to a sustained squeeze on households budgets Concurrently food prices. rose sharply and by more on average than other goods In this briefing. note we document how the food purchases of households in the UK have. changed over this period of recession and food price rises We follow the. same households over time which allows us to control for fixed. differences in households food purchasing behaviour We show that on. average real food expenditure i e nominal expenditure on food divided. by the food component of the consumer price index declined and that. households bought fewer calories and have switched to cheaper calories. This has coincided with a switch towards more calorie dense types of food. and substitution to more calorific food products within food types. We also investigate how the nutritional quality of the foods that. households purchase has changed over this period We find that on. average across a number of measures the nutritional quality of foods. purchased declined from 2005 07 to 2010 12 Households substituted. towards less healthy food types mainly towards processed foods and. away from fruit and vegetables However they also shifted towards. healthier food products within food types for example the average. saturated fat content of processed food declined, There are differences across households Households with young children. cut back on calories purchased by more than other household types. Pensioners reduced calories purchased by more than non pensioner. households without children All household types reduced their real. expenditure per calorie with the average reduction being largest for. households with young children, Changes in the average nutritional quality of foods purchased also varied. by household type Pensioners households with young children and. single parent households experienced a larger decline in the nutritional. quality of the foods they purchased This was partly due to greater. substitution towards processed food and away from fruit and vegetables. which contributed towards increases in the intensity of saturated fat and. sugar in their purchases, The briefing note is structured as follows Section 2 provides some. background Section 3 describes how the food purchasing behaviour of. Institute for Fiscal Studies 2013, households has changed over the recession Section 4 describes how the.
nutritional quality of the foods that households purchase has changed. since 2005 Section 5 summarises and concludes,2 Background. The UK economy has been stagnant since the start of the global economic. crisis in 2008 Prices have increased faster than wages and unemployment. has increased squeezing households disposable incomes From 2007 to. 2011 the median real net income for parents with dependent children fell. by 7 5 that for pensioner households rose by 3 7 and that for non. pensioners without dependent children fell by 0 8 2. Recent work by Crossley Low and O Dea 2013 3 documents the fact that. over the recent recession households have cut back on spending by more. than in previous recessions and in contrast to earlier recessions they have. cut back on food spending, Around the same time as the global recession the price of food in the UK. rose sharply From 2007 to 2012 the price of food rose by 10 2 more. than the price of all goods measured by the consumer price index This. increase coincided with a worldwide increase in food prices driven by a. sharp rise in the price of certain commodities 4 However UK food prices. rose by more than in comparative economies see Figure 1 Not only was. the increase higher in the UK but this larger increase in the price of food. relative to other goods has persisted for longer than in other OECD. The combined impact of the squeeze on household budgets and higher. food prices translated into changes in the share of households total. expenditure allocated to food From 2005 to 2009 average household. Authors calculations using the Family Resources Survey Households net real income. is after housing costs and is deflated by the consumer price index. T F Crossley H Low and C O Dea Household consumption through recent. recessions Fiscal Studies 2011 34 203 29, http onlinelibrary wiley com doi 10 1111 j 1475 5890 2013 12003 x pdf. HM Government The 2007 08 Agricultural Price Spikes Causes and Policy. Implications 2010 http archive defra gov uk foodfarm food pdf ag. price100105 pdf,Institute for Fiscal Studies 2013, expenditure on food and alcohol as a share of total expenditure rose from. 17 4 to 18 2 but it fell back to 17 6 in 2011 5, Figure 1 Real food price in selected countries since 2005.
Note Price of food in i e excluding food bought in restaurants and takeaways from the. consumer price index CPI relative to overall level of CPI for that country January 2005 1. Source OECD calculated using Consumer Prices and Consumer Prices food monthly. In this briefing note we describe changes in food purchased for. consumption at home this does not include food purchased and eaten. outside of the home Food at home accounts for 86 1 of total calories. purchased in 2005 07 this figure rose to 87 3 in 2010 11 6. We document changes in households real food expenditure in the number. of calories they purchase and in the nutritional quality of foods purchased. over the period 2005 12 We use extremely detailed data on food. purchases that households made and brought into the home 7 These rich. Authors calculations using the Living Costs and Food Survey 2005 11 Prior to 2008. this survey was called the Expenditure and Food Survey and before that the Family. Expenditure Survey, Authors calculations using the Living Costs and Food Survey 2005 11. The data are from the Kantar Worldpanel see the appendix for details. Institute for Fiscal Studies 2013, data allow us to follow the same households through time and thus control. for fixed differences in households behaviour,3 Household food spending. We begin by describing how household food spending patterns have. changed over the recession The recession is estimated to have started in. the second quarter of 2008 and to have ended in the third quarter of. 2009 8 We compare three periods before the recession 2005Q1. 2007Q4 a period covering the recession 2008Q1 2009Q4 and since the. recession ended 2010Q1 2012Q2, We measure real food expenditure as nominal food expenditure on food. purchases brought into the home divided by the food component of the. consumer price index 9 and we adjust real food expenditure so that it is. expressed in adult equivalent terms see the appendix for details Figure. 2 shows how average real food expenditure for home consumption per. adult equivalent has changed over the period 2005 12 Over 2005 07 the. average household spent 102 each month per adult equivalent in. January 2008 pounds this had fallen by 4 00 3 9 on average by. 2008 09 and was 8 70 8 5 lower than in 2005 07 by 2010 12. Spending continued to fall substantially after the end of the recession in. 2009 Over this period nominal spending on food rose but by less than the. increase in the price of food, In Figure 3 we show how the number of calories from food purchases.
brought into the home has changed over time Over the period 2005 07. households purchased on average 2086 calories 10 per adult equivalent. per day in 2008 09 households purchased 38 1 8 fewer calories on. average and by 2010 12 they purchased 74 3 6 fewer calories than in. We use the convention of defining a recession as two or more consecutive periods of. decline in GDP, This can be interpreted as a quantity index of food purchased i e if the price of food. rises by more than a household s nominal expenditure the household is not able to. purchase as much food and this will be reflected in lower real food expenditure. Throughout we use the convention of abbreviating kilocalorie to calorie. Institute for Fiscal Studies 2013, Figure 2 Real food expenditure per adult equivalent per month. Note Each dot represents mean real food expenditure nominal food expenditure divided by the. food component of the consumer price index for food indexed to January 2008 per adult. equivalent see the appendix for details of adjustment per month after removing month effects. and permanent differences in real expenditure across households The grey dotted lines are 95. confidence intervals, Source Authors calculations using Kantar Worldpanel data on food purchases brought into the. home See the appendix for details, Figure 3 Calories purchased per adult equivalent per day. Note Each dot represents mean calories purchased per adult equivalent see the appendix for. details per day after removing month effects and permanent differences in calories purchased. across households The grey dotted lines are 95 confidence intervals. Source Authors calculations using Kantar Worldpanel data on food purchases brought into the. home See the appendix for details,Institute for Fiscal Studies 2013.
Figure 3 shows that calories declined between 2005 and 2012 with the. sharpest fall being between 2008 and 2012 Recent work by Griffith. Lluberas and L hrmann 2013 11 shows that calories purchased have. gradually declined since 1980 What is unusual about recent changes in. food purchases is both the extent to which households have reduced their. real expenditure and the fact that they have done so by more than they. have reduced calories purchased meaning real food expenditure per. calorie has fallen This latter fact bucks a long run trend toward higher. real expenditure per calorie since 1980, Figure 4 shows that on average households reduced real expenditure per. 1000 calories from around 1 64 in 2005 07 by 2 1 to 2008 09 and by. 5 2 from 2005 07 to 2010 12 This means that households substituted. to foods that provided cheaper calories,Figure 4 Real expenditure per 1000 calories. Note Each dot represents mean real expenditure in January 2008 prices per 1000 calories. after removing month effects and permanent differences in real expenditure per 1000 calories. across households The grey dotted lines are 95 confidence intervals. Source Authors calculations using Kantar Worldpanel data on food purchases brought into the.

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