One of the first studies of how recent soaring inflation impacts demographic groups that adds to mounting evidence of Black and Hispanic households disproportionately feeling the economic burdens since the beginning states that Black and Hispanic Americans are affected more by record inflation than other groups.
The customer shops for produce at the store.
The New York Fed said in a post that Hispanic Americans and black Americans are both experiencing worse inflation than average.
The weighted average of the goods used in the consumer price index's goods basket was used by the New York Fed to calculate inflation.
According to the New York Fed, its calculations still underestimate the actual gaps in inflation.
The situation has gotten worse since the beginning of the Covid-19 epidemic, as the disparity in inflation between demographic groups is more than double what it was in 2019.
Black and Hispanic Americans have experienced worse unemployment rates than whites since the beginning of the epidemic, as well as being more likely to struggle to make rent or mortgage payments.
Lower-income households tend to spend a higher proportion of their income on goods with prices more likely to be impacted by inflation. Food and transportation have been the categories that have risen the most in price over the last year. The most recent Labor Department data shows that gas prices went up by almost 50 percent from May 2021.
Consumers are spending less on discretionary items as a result of Target and Walmart's disappointing earnings results. Tom Essaye, an analyst at Seven Reports, said in a note that consumers are starting to buy less expensive private-label goods and are buying less essential items. This is proof that consumers are getting squeezed by inflation.
Some demographic groups have higher inflation.
The poor could be hurt by inflation.
Low-income Americans are the most affected by inflation.
As the Fed raises interest rates, here's what it will cost.
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