The U.S. Bureau of Labor Statistics (BLS) reported that the rate of inflation for January was 0.3%, establishing the rate of inflation for the 12-month period ending in January at 3.4%. Studies have determined that low-income and nonwhite households in California are more severely impacted by inflation than wealthier and white households.
According to the Consumer Price Index (CPI) summary released by the BLS, costs increased over the last year in categories such as food (+2.6%), electricity (+3.8%), shelter (+6%), and transportation services (+9.5%). In January, goods and services that experienced the highest increase in cost were energy services (+1.4%), electricity (+1.2%), utility gas service (+2%), and transportation services (+1%).
The California Budget and Policy Center revealed in a report that inflation and high cost of living disproportionately affect low-income and nonwhite households in California. The report referenced a survey which found that three out of five households in the state, with incomes less than $50,000, reported struggling to afford basic expenses. Additionally, approximately half of nonwhite California households said they were grappling with the cost of basic expenses, compared to approximately 30% of white households in the state.
A separate report from the California Budget and Policy Center disclosed that California has the highest rate of poverty in the country, a situation worsened by the pandemic. Citing data from the Public Policy Institute of California, it stated that prior to the onset of the pandemic, approximately 16.4% of Californians were "close to the poverty line." By 2019, more than a third of state's residents were "poor or near poor." Low-wage workers in industries such as hospitality lost their jobs during pandemic shutdowns while many higher-income workers retained their jobs and worked from home. The "economic distress" experienced by low-income Californians has only intensified due to rising inflation, the report said.
According to its website, the BLS is part of the Department of Labor and provides data related to labor economics. The BLS analyzes and publishes this data for use by government agencies, employers, and the general public.