Inflation affects Black and Hispanic Americans more severely. See
The rising cost of commodities like food, gas, housing, and other necessities is causing hardship for many Americans. However, some population groups have been hit considerably worse by inflation.
A new analysis from the Federal Reserve Bank of New York found that since prices started to rise in March 2021, Black and Hispanic Americans have seen higher inflation rates than the national average. That represents a change from the pre-pandemic period, when the inflation rates for Black and Hispanic Americans were equal to or somewhat lower than the national average.
Researchers from the New York Fed examined consumer spending data from the Bureau of Labor Statistics’ Consumer Expenditure Survey to ascertain the various inflation rates among demographic groupings. They took into account
For instance, compared to White and Asian Americans, Hispanic and Black Americans spend more on transportation — including petrol and used automobiles, both of which have seen price increases — and less on entertainment and health care.
Due to supply chain issues brought on by the pandemic and the effects of Russia’s invasion of Ukraine, prices for the majority of commodities have increased recently. It has been 40 years since inflation has risen so quickly.
In May, the annual inflation rate for the main consumer categories the New York Fed examined was 9.2 percent, which was slightly higher than the standard 8.6 percent reading for the Consumer Price Index.
Inflation rates for Hispanic Americans were, however, around 0.6 percentage points higher when expenditure levels were taken into account.
researchers produced an overall rating. It was around 0.2 percentage points higher for Black Americans.
While it was roughly 0.5 percentage points lower for Asian Americans, the rate for White Americans was relatively similar to the composite rate the Fed created.
While Black and Hispanic Americans suffered slightly lower inflation than the national average and Asian Americans slightly more, these gaps are noticeably more than twice as wide as they were in 2019.
However, the researchers assert that the present inflation gaps between various demographic groups are probably far wider than the data revealed. For the same goods, various groups probably pay different costs, and Black and Hispanic Americans probably experience faster price growth.
According to a previous New York Fed report, Black and Hispanic Americans have done better in the jobs recovery following the pandemic-driven economic downturn in the spring of 2020.
In that study, the employment-to-population ratio, which examines the proportion of persons who are employed relative to all people, was the main subject for those aged 25 to 54.
Black and Hispanic Americans lost more jobs when COVID-19 first shook up the economy. In comparison to the ordinary American, this increased the employment rate disparity for both groups by at least 6 percentage points.
The investigation revealed that in February 2020, the disparity was 2.3 percentage points for Hispanic Americans and 4.4 percentage points for Black Americans.
However, the difference for Black Americans was 3.3 percentage points smaller in May 2022 than it had been before the outbreak. The difference for Hispanic Americans was 2.6 percentage points, which was slightly higher than the pre-pandemic margin.
Contrast that with the Great Recession’s subsequent job market rebound. Both on average and for Black and Hispanic Americans, it took over ten years for employment rates to reach their pre-recession peak.
The reason why the employment rate gap shrank so swiftly during the current recovery was not explored by the researchers. However, due to the extremely competitive job market, many people were able to find employment more easily.