Monday, March 24, 2008

Inflation hitting poor hardest: cost for basic necessities up 9.2% since '06, faster than inflation for non-necessities

The Washington post reported last Friday that the cost of basic necessities, including groceries, energy, and health care, are up 9.2% since 2006, while items which are easier to cut back on during times of economic duress (alcohol, eating out, new cars) are rising at a slower rate. Meanwhile, the average non-managerial worker has seen his or her pay rise just 5% in the same period.

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