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NY Fed: Inflation Disparities Have Largely Closed By Race, Not So Incomes

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  • NY Fed research (here) shows that between early 2021-June 2022, Black, Hispanic, and middle-income households were most affected by rising inflation, experiencing steadily higher price increases relative to the overall average.
  • This pattern is largely because a greater share of these groups’ expenditures is devoted to transportation, particularly used cars and motor fuel, categories that led the 2021 inflationary episode.
  • However, over the last five months, as transportation inflation has declined, these gaps have declined as well.
  • That said, whilst race disparity has notably closed, lower- rather than middle-income categories still bear the brunt of relative inflation.

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