A recent 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. While spending in wealthy households went up by only 6%. Economists expect inflation issues to continue into 2022. However, some financial advisors say those inflationary pressures will help gold prices in the new year.
Economists warn of inflation inequality as poor get slammed by rising prices
The coronavirus pandemic has led to a new era of inflation inequality, economists warn, in which poor households bear the brunt of rising prices.
That’s because a bigger portion of their budget goes toward categories that have spiked in cost. Food is up 6.4% over the past year, for example, while gasoline jumped a whopping 58%. And now many people are facing those higher prices as federal stimulus programs fade away.
“They’re essentially looking to stretch a dollar most days,” said Chris Wimer, co-director of the Center on Poverty & Social Policy at Columbia University. “It’s going to lead to difficult choices between putting gas in the car or paying for your kids’ child care or putting food on the table.”
A recent 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 in 2019. That translates into about $3,500 for the average household.
By contrast, spending by wealthy households went up by only 6%.
Read the full story, here.
The Economist/Martha C. White
What real-time indicators suggest about Omicron’s economic impact
What is the economic impact of Omicron? The latest variant of the coronavirus has let rip at such a ferocious pace that forecasters are still catching their breath, and it will be some time before its economic effects become apparent in the official data, which are published with a lag. But a number of speedier, albeit partial, indicators can provide some insight into how consumers and workers may be adjusting their behavior.
You can read the full story, here.
Gold will continue to do well in 2022 as inflationary pressures persist: Financial services firm
Dean McPherson of TMX says inflationary pressures will continue into 2022, owing to headwinds such as Covid-19, and miners will benefit from rising gold prices.
You can watch the full interview, here.