Mon, 15 Sep 2025

Mon, 15 Sep 2025 Inflation is hitting some Americans harder than others

Rising prices, partly driven by tariffs, could worsen a divide in the US economy between the haves and the have-nots.

*Inflation is rising due in part to tariffs, but it remains below its peak, sparking debate over the long-term impact of Trump's trade policies.
*
*Lower-income households, such as nursing student Yanique Clarke, are feeling the pinch of higher prices for everyday goods, including groceries and clothing.
*
*The Labor Department reports that prices for several tariff-exposed products rose in August, with clothing prices increasing 0.5% and grocery prices rising 0.6%.
*
*Economists note that lower-income households tend to spend more on imports, making them particularly vulnerable to the effects of tariffs.
*
*A report from the Yale Budget Lab found that core goods prices are 1.9% above pre-2025 trends, suggesting tariffs are driving up prices for basic products.
*
*Corporate executives, such as McDonald's CEO Chris Kempczinski, acknowledge a two-tier economy, with middle and lower-income consumers feeling pressured by higher prices.
*
*Middle-class Americans like Nancy Garcia and Sylvia Sealy report comparing prices and shopping more cautiously due to rising costs.
*
  >>