By CultureBanx Team
- Consumer prices surged 8.5% in March to a 41 year high
- 60% of Black small business owners have increased the prices for products or services
Just being an average consumer or small business owner is getting more expensive by the day with prices for a lot of items on the rise. In fact, U.S. consumer prices surged 8.5% in March, the highest since 1981. Even though the unemployment rate nationwide is falling, it stands at 6.2% for the Black community, which is the highest for any ethnic demographic. Price increases affected a range of goods from big-ticket items such as used cars to kitchen staples such as bacon, and all of this could further stagnate the economic recovery for people of color.
Why This Matters: Black consumers are also getting hit hard by inflation. Commodities from lumber to corn and other crops have risen dramatically, and many companies are passing those costs on to consumers, sending the price for new houses, food and more.
Census data shows that there are more than two million Black-owned businesses in the United States. Newly released survey from Goldman Sachs found that 60% of Black small business owners have increased the prices for products or services in comparison to 68% of an overall population of business owners.
For an economy finally starting to roar back from the pandemic recession, higher inflation poses a major potential risk. What matters most is how long these higher prices will actually last.
Situational Awareness: The erosion of purchasing power adds onto the challenges of maintaining economic stability during the pandemic. Black homeownership hit its lowest rate since the 1960s just last year. Inflation limiting purchasing power and the prospects of increased interest rates are likely to impact efforts to increase Black homeownership.
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