US Inflation Hits Hardest Where It Hurts Most: Low-Income Households

Rising US Prices Could Widen Divide Between Haves and Have-Nots Accelerating inflation driven by tariffs has begun to take a toll on American consumers, particularly those in lower-income households, according to government data. The early stages of businesses passing on the costs of President Donald Trump's sweeping import tariffs to consumers have been evident in recent months. For Yanique Clarke, a nursing student in Manhattan who identifies as lower-income, the impact has been stark. While shopping for groceries at a Target store this week, she noted that prices were "really drastically high" for meat, vegetables, and fruit. "It's quite a while now, but it's getting higher," she said. Clarke's experience is not an isolated incident. A recent analysis of government data suggests that inflation remains well below its peak, but the pace of price hikes is accelerating. The tariffs imposed by Trump have added to the upward pressure on prices, with some businesses already passing on the costs to consumers. The divide between the haves and have-nots in the US economy has long been a concern for economists and policymakers. Rising inflation could exacerbate this issue, making it even more difficult for lower-income households to make ends meet. "Inflation is always a challenge for low-income households because they spend a larger portion of their income on necessities like food and housing," said Dr. Susan Houseman, an economist at the Upjohn Institute. The impact of tariffs on inflation has been a topic of debate among economists. While some argue that the tariffs will lead to sustained price hikes, others contend that the effects will be short-lived. "The tariffs are likely to have a small but significant effect on prices in the near term," said Dr. Robert Shapiro, an economist at Sonecon. Despite the uncertainty surrounding the impact of tariffs on inflation, one thing is clear: American consumers are already feeling the pinch. For Clarke and others like her, the rising prices are a harsh reminder that the benefits of economic growth have not been evenly distributed. "It's getting harder to make ends meet," she said. As the US economy continues to navigate the effects of tariffs on inflation, policymakers will be closely watching the data for signs of sustained price hikes. The Federal Reserve has already indicated that it is monitoring the situation and may take action if necessary to keep inflation in check. In the meantime, consumers like Clarke will continue to feel the impact of rising prices. As she navigated the aisles of Target this week, she was forced to make difficult choices about what to buy and what to sacrifice. "It's not just groceries," she said. "Everything is getting more expensive." *Reporting by Bbc.*