The poorest communities are bearing the brunt of rising costs,” Munseob Lee, of the University of California, says
Most Americans are feeling the squeeze of inflation. However, black households are getting the brunt of it, according to a University of California San Diego study, which is the first to share findings about how the impacts of inflation differ by race. Black households “experienced slightly higher and more volatile inflation in consumer goods” when compared with the impacts white households experienced, a press release said.
“Black and low-income households are more likely to live in food deserts and have limited access to affordable and nutritious food,” Study author Munseob Lee, assistant professor of economics at the School of Global Policy and Strategy said. “Retail products became more expensive, and shelves became frequently empty because of increased shipping costs and supply chain disruption.” The assessment comes as the U.S. struggles with its biggest inflation surge in more than 40 years. Americans are paying higher prices across the board, and financial experts warn that ‘real economic pain’ is ahead. “This volatility makes it more difficult for households to predict and recalibrate consumption and savings,” Lee said.
What happens now? Multiple states have already approved new stimulus packages to ease residents’ economic concerns, and some states are planning to begin sending out more payments in the coming months.
Deeper reading: Inflation Tends to Impact Black Households the Most, Study Finds
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