Home World The Hispanic community, the most affected by inflation in the US

The Hispanic community, the most affected by inflation in the US

La comunidad hispana, las más afectada por la inflación en EEUU

The Latin American community in the United States, followed by the African American, is being the most affected by the rampant inflation in the United Statesthat last May it stood at 8.6%, the largest in four decades, according to the New York Federal Reserve (Fed).

In a brief report, the most important branch of the US central bank, which makes its calculations based on the consumption habits of the different communities in the country (whites, Asians, blacks and Latinos), specified that Inflation for Hispanics in the United States stood at 9.2% in May, 0.6% more than the consumer price index for that month.

For the African-American community, the inflation rate was 8.8%, 0.2% above 8.6%.

The New York branch of the central bank gave as an example that according to the survey on consumer spending carried out by the Bureau of Labor Statistics (BLS, in English), African Americans "consume relatively more on transportation and lodging and relatively less on food and entertainment than white Americans".

"We found that (…) disparities in inflation rates have widened during the recent inflationary episode, and disadvantaged groups experience more inflation"assures the New York Fed report, in relation to the fact that these communities were also the most affected by the covid-19 pandemic and the economic crisis that it unleashed.

The New York Fed highlights the importance of these data, to take them into account when "pursue monetary policy that strives to achieve (…) price stability for all Americans" and stresses that it will continue to monitor "the ways different demographic groups experience inflation".

In addition, he points out that these demographic disparities have more than doubled since 2019, just before the outbreak of the pandemic, and acknowledges that in his calculations it is "likely to underestimate actual gaps" in inflation for these communities.

This disparity adds to other social gaps like the one of unemployment and its recovery after the economic reopening that followed the restrictions to prevent the spread of the pandemic.

Unemployment
According to BLS data, while the unemployment rate in the United States it went from 4.6% in October 2021 to 3.9% in December of that year, that of the black community evolved from 7.8% in October 2021 to 7.1% in December of the same year and that of Latin Americans progressed from 5.7% in October 2021 to 4.9% in December 2021.

Compared to these two communities, the white community unemployment rate was 4% in October 2021 and 3.2% in December of last year.

The Federal Reserve is a decentralized system that has 12 branches or regional banks, whose mission is to implement at the local level the decisions on monetary policy made by the Federal Open Market Committee.

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