Inflation Hit Black and Hispanic Households Hardest

We have all been affected by the rapid price growth that started in 2021, but felt more pinch in black and Hispanic homes.

This is according to the research by New York Fed published on Wednesday. The report found that black and Hispanic families experienced more than average inflation during most times of 2021 and 2022. However, inflation inequality has decreased as the price of gas and cars used in the last few months have decreased.

On average, different groups of different people buy different things, so the price increases in different categories, not affecting all equally. For example, Hispanic families spent 22% of their income on transportation, while compared to 15% for Asian-American / Pacific Island homes. When prices began to grow, especially for cars and gasoline, the two groups actually experienced various rates of inflation, as the chart below shows.

People with income from different levels also had different experiences during this stretch of inflation. Middle-Aye families were initially killed the most difficult (due to proportional spending more on re-transportation), but in recent months 40% of the income below income has been the most difficult hit in homes as inflation is now concentrated in housing and food, which takes more to the budget of lower income houses.

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