Rising Supermarket Prices Hit Middle Class Hard Amid Cost-of-Living Crisis

Rising Supermarket Prices Hit Middle Class Hard Amid Cost-of-Living Crisis

The middle class is feeling the pinch as supermarket prices continue to rise, exacerbating the ongoing cost-of-living crisis. According to recent reports, essential goods such as groceries, housing, and transportation have seen significant price hikes, disproportionately affecting middle-income households.

The Impact of Inflation

Inflation has remained stubbornly high, with prices increasing by 23% on average since April 2019. Food prices have surged by 27%, and gasoline costs are up by 29%. These essentials account for a large portion of household budgets, particularly for middle-class families, who spend approximately 75% of their income on necessities like food, housing, and transportation.

Wage Growth vs. Rising Costs

While wages have increased, they have not kept pace with inflation. Lower-income earners have seen some relief with an 8% rise in inflation-adjusted wages, but middle- and higher-income earners have experienced stagnant or declining real wages. This disparity has left many middle-class families struggling to maintain their standard of living.

Broader Societal Effects

The cost-of-living crisis is also impacting mental and physical health, with rising stress levels and poorer nutrition due to higher food costs. Additionally, small businesses are suffering as consumers cut back on non-essential spending, further straining the economy.

For more details, visit PPIC's report.