How does inflation impact Latino families?

North Carolina, Raleigh – Latinos in the United States are less optimistic about the economy than a year ago, as inflation threatens to cut their purchasing power, according to an analysis by the Axios site.

The report shows that Latino and African American households spend 7,1% of their after-tax income on energy payments, compared to 5,4% for other households.

Also, the report indicates that they spend 12,5% of their income on food, compared to 11,1% for others.

With prices rising, some Latino families in North Carolina have taken new steps to try to stay afloat.

Growth engine

Latinos have been engines of economic growth over the past decade, opening new businesses at a faster rate than other groups and increasing their homeownership rates.

The group's total production would make them the seventh largest GDP in the world if they were a country, the report highlights.

Additionally, according to the study, Latinos have helped prop up the economy as a workforce and as consumers, even though they are generally poorly paid, have less access to business financing and lack savings.

More about what inflation is and how it affects the pockets of Latinos here

In figures

According to the Bureau of Labor Statistics, prices rose 7% last year on items such as food, cars and energy.

As a result, the percentage of respondents who said they were better off than last year fell from 62% to 59%

While those who said they expect to be better off financially in 2022 fell from 78% to 70%, according to the Hispanic Consumer Sentiment Index.

Why is the price of gasoline rising and until when?

Rethinking money spending

Hispanic confidence has remained somewhat stable over the past year.

Latinos make up more than 18% of the population, so their change in perspective could foreshadow how the rest of Americans rethink how they spend their money.

The late 2021 study explains that low-income individuals and households, especially African American and Latino families, tend to spend more of their income on basic products that are prone to price increases, such as food and gasoline.

They also tend to use cash more often,

The reason is because they often lack bank accounts or have to pay more in bank fees when they have one, which makes them more vulnerable to rising prices.

Inflation, priority issue

What are the most important issues for Latino voters in North Carolina?

Inflation is the priority issue that, according to the majority of Latino voters, the candidates for national senator from North Carolina.

As recorded in a poll to Latino voters in North Carolina conducted by Change Research and commissioned by Enlace Latino NC , Carolina Forward and New North Carolina Project; The general increase in prices is the issue that most worries this demographic sector, even above immigration reform.

In fact, asked about the most important issues when electing a national senator, Latino voters in North Carolina mentioned immigration reform only in third place; The answer lies behind fighting inflation and reducing the costs of the health system.