Low-income households, young Americans, and less educated individuals were more affected by inflation than other categories, according to new reports by the Federal Reserve Bank of New York.
Economists at the regional central bank published two studies this month that assessed inflation disparities by income, age, race, and education. They found that those who spent more of their earnings on food, transportation, and housing felt the most amount of inflationary pain from early 2021 to June 2022.
The first report discovered that blacks, Hispanics, and middle-income households faced financial pressure as they dedicated more of their spending to transportation costs.
“This pattern is largely because a greater share of these groups’ expenditures is devoted to transportation, particularly used cars and motor fuel, categories that led the 2021 inflationary episode. However, over the last five months, as transportation inflation has declined, these gaps have declined as well,” the report authors said….