The article highlights the disproportionate impact of inflation on low-income households. Since 2005, these households have experienced a 64% price increase, surpassing the 57% rise felt by higher earners. This trend is particularly worrying as lower-income families allocate a larger share of their earnings to essential goods, including food and housing, which have seen substantial price hikes. Experts suggest that unless rent moderates and wages continue to grow steadily, relief may remain out of reach for these vulnerable households.
Lower-income households spend more of their money on necessities, so if categories like food, housing, and utilities are experiencing faster price growth, these households will be hardest hit.
Lower-income individuals are more hamstrung in their ability to pivot to lower-priced goods, limiting their flexibility in response to rising prices.
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