US EditionThe wealthy ramp up spending while other Americans tread water, new study finds
Higher-income households increased inflation-adjusted spending by 2.3% since 2023 while lower-income households rose 0.9%, reflecting growing consumption-driven inequality, New York Fed data show.
- Higher-Income Americans and those with college degrees have ramped up their spending more quickly in the past three years than other consumers.
- Lower-Income and rural households faced higher inflation than higher-income households in the final three months of last year.
- The data shows a pattern of lower-income households faring better in 2021 and 2022, while wealthier households boosted their spending in 2023 and 2024.
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The chart reinforces the notion of a "K"-shaped economy, in which the wealthy drive a disproportionate share of consumption, while the poorest grapple with higher inflation.
Associated Press News
The wealthy ramp up spending while other Americans tread water, new study finds
Higher-income Americans and those with college degrees have ramped up their spending more quickly in the past three years than lower-income households and those without college diplomas, according to new data released Tuesday, evidence of worsening inequality amid overall growth that may explain som
Affluent spending brings a K-shaped economy into sharper focus
Higher-income Americans and those with college degrees have ramped up their spending more quickly in the past three years than other consumers, according to new data released Tuesday, evidence of worsening inequality that may explain some of the growing pessimism about the economy. The data, released by the Federal Reserve Bank of New York, add support to the notion of a “K-shaped” economy, in which upper-income Americans are fueling a dispropor…
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