In economics, a Giffen good is a low-income staple whose demand can rise when its price increases.
The idea is an exception to the ordinary law of demand. A price increase reduces a household’s purchasing power. If the product is an essential staple and consumers cannot easily replace it, the loss of real income may force them to buy more of that staple while cutting purchases of costlier foods.
The concept is associated with the Scottish economist Robert Giffen, though the historical evidence often linked to the idea has been debated. A Giffen good must be strongly inferior, occupy a large share of a household budget, and have limited substitutes.
Giffen goods are not the same as Veblen goods. Veblen demand is associated with prestige and status, whereas Giffen demand is associated with severe budget pressure among consumers.