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Soaring Costs Strain US Households as Economy Diverges
Food banks see rising demand from middle-income families struggling with inflation and stagnant wages
Published on Feb. 4, 2026
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Across the U.S., households are facing increasing financial strain as the economy diverges, with wealthier families benefiting from rising asset values while middle- and lower-income families grapple with surging costs of living that outpace wage growth. Food banks in the Washington, D.C. area and beyond are reporting a spike in demand, including from families that previously did not need assistance.
Why it matters
This 'K-shaped' economic recovery, where the top and bottom income groups experience vastly different outcomes, highlights growing inequality and the challenges facing many American families as inflation erodes purchasing power despite an otherwise strong macroeconomic backdrop. The strain on household budgets raises concerns about the sustainability of the recovery and the ability of policymakers to address the needs of those falling behind.
The details
In the Washington, D.C. suburb of Hyattsville, Maryland, long lines form at food distribution sites each morning as residents from various backgrounds, including students, delivery workers, and federal contractors, seek groceries for their families. Even those with two incomes are struggling, like 58-year-old chef Shirleyann Desormeaux, who says 'it's still not enough' to cover rent, food, and other expenses for her household of four children. Nationwide, nearly 60% of consumer spending is coming from the top 20% of income earners, while food banks report a rise in demand from middle-income families making $90,000 to $120,000 per year.
- In December, food prices were 3.1% higher than a year earlier.
The players
Shirleyann Desormeaux
A 58-year-old chef supporting a household of four children in Hyattsville, Maryland.
Salih Taylor
A federal worker in the Washington, D.C. area who has started collecting free groceries to help make ends meet.
Oliver Carter
The pastor of No Limits Outreach Ministries, which runs a food distribution point in Hyattsville, Maryland.
Tricia Jones
A Delaware resident who has been living in a hotel room with her husband and toddler for months after temporarily losing her income source.
What they’re saying
“Right now, it's a lot -- paying rent, buying food. Even with two incomes, it's still not enough.”
— Shirleyann Desormeaux, Chef
“I used to be like, 'I've got food, I don't need it.' But it helps out a lot.”
— Salih Taylor, Federal worker
“Now, they're left to fend for themselves.”
— Oliver Carter, Pastor
“The pay doesn't keep up with the cost of living. We don't get any assistance with childcare. I couldn't even get assistance with a hotel voucher, because they told me that I work.”
— Tricia Jones
The takeaway
This diverging economy, where the wealthy thrive while middle- and lower-income families struggle, highlights the growing inequality and the challenges facing many American households as inflation erodes their purchasing power. Policymakers will need to address the needs of those falling behind to ensure a more equitable and sustainable recovery.
