Opinion | Why the poor suffer most from inflation, even though their wages have risen a lot

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Opinion | Why the poor suffer most from inflation, even though their wages have risen a lot
France Dernières Nouvelles,France Actualités
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Opinion by Catherine Rampell: Lower-income, working households are seeing bigger increases in prices for the things they buy than are higher-income households

of their spending on gas and groceries, for example, than do higher-income households. Those are two categories with big price spikes.

Another factor affecting whether these price increases are outpacing wage gains: what fraction of a household’s earnings typically gets spent at all. Higher-income people, by contrast, tend to spend a relatively small fraction of their earnings each year. The median household making over $150,000 spends less than half its earnings in a given year.

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