“Rapid inflation affects the poorest communities the fastest and most,” says the Cleveland.com report.
Xinhua has , In the United States, the cost of food, gas, and housing is higher than ever before, not counting the past year. Wage growth and wages remain the same, according to a Cleveland.com report last week.
Ohio raised its minimum wage on January 1 to $9.30 an hour, which is a 5.6% increase in wages, up from $8.80, but that wage increase doesn’t even cover the CPI gap. consumers) up 7.5% from January 2021 to January 2022, reported a local news portal based in Cleveland, Ohio’s second largest city.
“Wages at the low end of the wage distribution are not growing the fastest,” said Bill Kostias, an economics professor at Cleveland State University. “At the end of the day, if inflation is at 8.6%, the 6% wage increase you get becomes a pay cut when inflation is factored in.”
If inflation rises even a little, households with minimum wages may have to cut back on unnecessary expenses such as travel and entertainment. But if inflation is high, they may have to make decisions about utilities and food, according to the report.
“Rapid inflation affects the poorest communities the fastest and hardest,” the report said, adding that “an individual’s personal inflation rate can exceed the CPI gap if he is already on fuel.” You are forced to invest a lot of money. To put work and food on the table, which are the two categories with prices that are rising the fastest”.
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