Inflation has fallen. Why are groceries still so expensive? – msn/WaPost
“Low-income families have been hit hardest by rising grocery prices, and they spend 31 percent of their income on food, compared with 8 percent for wealthier ones. Food insecurity is rising and food banks around the country report significant increases in demand in the past year, particularly after the expiration of extra pandemic food stamps last February…”
High inflation disproportionately hurts low-income households – Federal Reserve Bank of Dallas
“Prior research suggests that inflation hits low-income households hardest for several reasons. They spend more of their income on necessities such as food, gas and rent—categories with greater-than-average inflation rates—leaving few ways to reduce spending . When prices rise, middle-income households may react by consuming cheaper goods and buying more generic brands. Low-income households do not have the same flexibility; in many cases, they are already consuming the cheapest products.
“Additionally, many low-income households lack the ability of higher-income households to stock up when prices are discounted, buy in bulk and save, delay purchases if there is an opportunity to save in the future or buy more cheaply online. Low-income households are also likely to have smaller cash buffers to tide them over a period of high inflation.”