Black Households Suffer the Most from Rising Inflation Rates

New research is the first to provide race-specific data on the impacts of inflation and suggests that income inequality in the U.S. is rising faster than current estimates. Black households in the U.S. faced higher and more volatile inflation compared to white households from 2004 to 2020, reveals new research from the University of California San Diego's School of Global Policy and Strategy. The study , published today by the Federal Reserve Bank of Richmond, finds that Black families experienced slightly higher inflation and 13 percent more volatile inflation, which impacts prices on groceries and other household essentials. Study author Munseob Lee , assistant professor of economics at the School of Global Policy and Strategy, says Black families spend a larger portion of their income on essential goods and services, like electricity and wireless phone services, compared to white households that spend more on luxury items, such as wine and pet care, which are less likely to fluctuate in price. Lee's research is the first to provide race-specific data on the impacts of inflation and suggests that income inequality in the U.S. is rising faster than current estimates. "Black and low-income households are more likely to live in food deserts and have limited access to affordable and nutritious food," Lee said. "As we saw recently, in those areas, retail products became more expensive and shelves in the retail stores became frequently empty because of increased shipping costs and supply chain disruption.