Post by Mya on Feb 12, 2022 15:42:31 GMT
Opinion: Inflation inequality: Poorest Americans are hit hardest by soaring prices on necessities
The fastest rate of inflation in 40 years is hurting families across the U.S. who are seeing ever-higher prices for everything from meat and potatoes to housing and gasoline.
But behind the headline number that’s been widely reported is something that often gets overlooked: Inflation affects different households in different ways—and sometimes hurts those with the least, the most.
Inflation, as calculated by the Bureau of Labor Statistics, is designed to track the price increases in a typical U.S. household’s basket of goods. The problem is spending bundles differ across households. For example, a family in the lowest 20% of income typically spends around 15% of their budget on groceries—this is nearly 60% more than households in the top 20% of the income distribution, according to my calculations.
www.marketwatch.com/story/inflation-inequality-poorest-americans-are-hit-hardest-by-soaring-prices-on-necessities-11642538540
The fastest rate of inflation in 40 years is hurting families across the U.S. who are seeing ever-higher prices for everything from meat and potatoes to housing and gasoline.
But behind the headline number that’s been widely reported is something that often gets overlooked: Inflation affects different households in different ways—and sometimes hurts those with the least, the most.
Inflation, as calculated by the Bureau of Labor Statistics, is designed to track the price increases in a typical U.S. household’s basket of goods. The problem is spending bundles differ across households. For example, a family in the lowest 20% of income typically spends around 15% of their budget on groceries—this is nearly 60% more than households in the top 20% of the income distribution, according to my calculations.
www.marketwatch.com/story/inflation-inequality-poorest-americans-are-hit-hardest-by-soaring-prices-on-necessities-11642538540