Economists Warn COVID Pandemic Has Led to New Era of Inflation Inequality with Poor Households Bearing Brunt of Rising Prices

An analysis by the Penn Wharton Budget Model found that low- and middle-income households spent about 7% more in 2021 for the same products they bought in 2020 or 2019, an average of about $3,500.

Experts now fear that poverty will rise in early 2022 as pandemic-related federal benefits phase out and President Joe Biden’s sweeping social spending package languishes in Congress.

There is one bright spot for low-wage workers: Median wages jumped more than 5% in November for the bottom quartile compared with a year ago.