#Bidenflation Burden Shifts From Middle Class To Poor: Fed Study

HOUSTON, TEXAS - AUGUST 15: Cartons of eggs are seen for sale in a Sprouts Farmers Market on August 15, 2022 in Houston, Texas. Egg prices steadily climb in the U.S. as inflation continues impacting grocery stores nationwide. (Photo by Brandon Bell/Getty Images)

At a glance

  • A study published Wednesday by the Federal Reserve Bank of New York reported that the primary burden of inflation has shifted from middle class to low-income households thanks to a shift in the spending categories hardest hit by price hikes.
  • As the cost of gas falls and the price of food and housing surges, lower-income households, defined as those earning less than $50,000, now face higher effective costs — roughly 0.3 percentage points higher than average — since they spend a larger portion of their income on food and housing than middle and high-income households.

 

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