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The figure is based on the latest reading of consumer prices, which rose 7.9% in February compared to a year ago, according to the US Department of Labor.
“It’s going to get worse before it gets better,” said Moody’s Analytics senior economist Ryan Sweet, who conducted the analysis.
While the pain is felt across the board, some feel it worse than others.
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Low- and middle-income American households spent about 7% more in 2021 on the same products they bought in 2020 or 2019, according to an analysis by the Penn Wharton Budget Model found. By comparison, spending by wealthy households rose 6%.
A separate study of fargo wells it showed that the middle class, in particular, is being squeezed. Inflation was half a point higher for middle-income consumers than for those at the top and bottom ends of the spectrum in December, according to Wells Fargo economists. When broken down by race and ethnicity, Hispanics and Latinos had the steepest increase in costs of living.