Statista Research Department
According to the 12-month percentage change in the consumer price index, or the monthly inflation rate for goods and services in the United States, prices grew by 7.7 percent in October 2022 compared to October 2021.
What is inflation?
A rise in the general level of prices is referred to as inflation. In other words, for inflation to occur in the whole economy, prices must be rising for a variety of goods and services, including housing, clothing, food, transportation, and gasoline. There isn’t always inflation if only a small subset of commodities or services are seeing price increases.
What is the connection between inflation and poverty?
Because money has value and can increase or decrease in value, poverty and inflation are related. When there are not enough resources, it is difficult to provide fundamental demands. In other words, when the price of fundamental necessities rises, so do the financial resources required to meet those demands.
Why Do the Poor Suffer More From Inflation?
High inflation has a disproportionately large negative impact on people who are struggling with poverty, which is one of the issues with poverty and inflation. The differences between how middle-class and upper-class people and lower-class people are affected by inflation are known as inflation inequality. High-income households are often able to cope with rising inflation. Low-income families, however, have little influence over their ability to spend. They frequently do not hold employment where pay is increased to reflect inflation. When cash flow is restricted, those with the lowest incomes cannot rely on loans. They also don’t have any savings to fall back on in tough times because they live off of what they earn.
Additionally, prices for necessities often rise at a greater rate than those for luxuries. In comparison to their counterparts, low-income earners spend a larger percentage of their income on necessities. As a result, as prices for necessities like food and gas rise, low-income households’ budgets would be put under more stress than those of higher-income ones.
Families who are unable to feed themselves regularly live below the international poverty threshold. Even when food is readily available and easily accessible, it often lacks the nutrients for a nutritious diet, and a healthy diet is nearly three times more expensive than the average food budget in low-income countries. Therefore, for people who are already experiencing difficulties in eating, hunger, undernourishment, and malnutrition increase when food prices rise.
Malnourished children who are raised in conditions of great poverty frequently grow up to be adults who struggle to make ends meet and support their families. The risk that a family will be stuck in a cycle of poverty for generations rises as a result of inflation, which drives up food prices and exacerbates food shortages.
Inflation’s impact on children
Children may go hungry, go without food, or even become malnourished if their family cannot afford to buy food because of inflation. It is anticipated that 6.7 million more children under five will be wasted. This is in addition to the 49.5 million children who currently suffer from wasting and the 144 million people who suffer from acute malnourishment.
We are dedicated to easing their suffering despite the often grave effects of undernourishment, particularly among children. Food for life global regularly provides children from vulnerable families with nutritious plant-based meals and snacks on our regular vegan relief food program.
The current state of inflation is putting a lot of pressure on vulnerable people all over the world. Food prices are rising, and many people can’t afford to feed their families. That’s why Food for Life global exists – to help those in need by providing nutritious, plant-based food. You can help make a difference in someone’s life by donating to Food for Life. With your support, we can continue to provide meals to those who would otherwise go hungry. Together, we can help make the world a little bit better for everyone.
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