How the BLS underestimates food inflation for low-income families. : The Indicator from Planet Money Low-income households spend a disproportionate amount of their income on food and as inflation continues to spike, especially when it comes to food prices, these families are particularly vulnerable. However, research looking at how the Bureau of Labor Statistics calculates the consumer price index, indicates the CPI may be failing to show the extent of that harm. Today, why the CPI may be underestimating higher prices in the supermarket for low-income Americans.

Who eats the cost of higher food prices?

Who eats the cost of higher food prices?

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KENA BETANCUR/AFP via Getty Images
(Photo credit should read KENA BETANCUR/AFP via Getty Images)
KENA BETANCUR/AFP via Getty Images

The latest Consumer Price Index report showed inflation in March was 8.5% higher than it was last year. Spikes in food prices are a big reason why as they are a component of the goods basket that makes up the CPI. However, the Bureau of Labor Statistics may be underestimating just how high food prices are for low-income households who spend a disproportionate amount of their income at the grocery store.

Today, a look at inequity in inflation. How deflation in organic and specialty foods is making overall food inflation harder to understand.

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