What is the impact of inflation on each state
Inflation continues to hurt people’s wallets across the country, but some have been hit harder than others, according to a report.
The US Department of Labor earlier this month reported that consumer prices rose nearly 8% in February compared to February 2021. KOIN said this was the largest increase of inflation since 1982. This comes as some are calling for the federal government to raise the mandatory minimum wage to $15 an hour.
QuoteWizard’s report looked at every state in the country and whether those residents are struggling to buy everyday household items.
The results indicate that, nationally, the number of those who say they have difficulty buying these necessary items has increased by 50% since June last year.
In 45 states, at least 40% of people reported having “mild to moderate difficulty” when it came to buying the items needed to function in the home. Of those 45 states, the percentage jumps from 40 to 50 percent of residents of Arkansas and Mississippi who have “mild to moderate difficulty” buying household items.
The results are getting worse. People in more than half of the country’s states – 28 – said they were going through a “very difficult time”.
The report also shows that four southern states – Mississippi, Louisiana, Texas and Georgia – had the highest percentage of people saying it became a “very difficult” task when trying to buy items for the House. Mississippi and Louisiana both had 16% while Texas and Georgia weren’t too far behind with 15% of people responding that way.
In total, across the country, the report finds that 12% of people are having “very hard times” coping with their household expenses.
Recent inflation has only intensified demands from some workers to raise the minimum wage to reflect the cost of living. The federal government last raised the minimum wage in 2009 to $7.25 an hour, according to the Economic Policy Institute.
This organization claims that with the minimum wage, purchasing power has decreased dramatically. They mentioned that a person who is paid $7.25 today essentially earns more than 20% less than a person who received the same minimum wage in 2009.
Those earning minimum wage have been hit hard by the recent increase in gas prices. In places where the minimum wage remains at $7.25, some spend close to an hour’s wages to buy gas to get to work.
At the state level, more than half of states in the United States have raised or will raise their minimum wages in 2022, according to News Nation. However, while some states are raising their minimum wages this year, others are not. People in places where wages are not expected to rise in 2022 are expected to be hardest hit, according to KOIN.