Rural Households Hit Hardest by Inflation in 2021-22

Rajashri Chakrabarti, Dan Garcia and Maxim Pinkovskiy

No 20230118c, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: To conclude our series, we present disparities in inflation rates by U.S. census region and rural status between June 2019 and the present. Notably, rural households were hit by inflation the hardest during the 2021-22 inflationary episode. This is intuitive, as rural households rely on transportation, and especially on motor fuel, to a much greater extent than urban households do. More generally, the recent rise in inflation has affected households in the South more than the national average, and households in the Northeast by less than the national average, though this difference has decreased in the last few months. Once again, these changes in inflation patterns can be explained by transportation inflation driving a large extent of price rises during 2021 and much of 2022, with housing and food inflation lately coming to the fore.

Keywords: inflation; inequality; rural areas; census; Regions (search for similar items in EconPapers)
JEL-codes: D63 E31 (search for similar items in EconPapers)
Date: 2023-01-18
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