GLOBALink | This holiday season, U.S. poor buckle under inflation: NYT-Xinhua

GLOBALink | This holiday season, U.S. poor buckle under inflation: NYT

Source: Xinhua

Editor: huaxia

2022-11-26 18:34:46

NEW YORK, Nov. 26 (Xinhua) -- The disproportionate burden of inflation placed on the U.S. poor is one of the reasons that the Federal Reserve is scrambling to quickly bring price increases back under control, reported The New York Times on Friday.

"The situation underlines a grim reality of the pandemic era," said the report. "A lot of these (poor) households are moving toward the greater fragility that was the norm before the pandemic."

In Boston, Massachusetts, wealthy people check in at the Langham Hotel, and the 135 U.S. dollars Thanksgiving brunch per adult at its in-house restaurant sold out weeks ago.

Meanwhile, many families line up in front of a local charity around 4:30 a.m. for its free pantry and turkeys. This is four hours earlier than its opening time, according to the report.

"The contrast illustrates a divide that is rippling through America's topsy-turvy economy nearly three years into the pandemic," said the report.

Many well-off consumers are still flush with savings and faring well financially, bolstering luxury brands and keeping some high-end retailers and travel companies optimistic about the holiday season, it said.

At the same time, America's poor are running low on cash buffers, struggling to keep up with rising prices and facing climbing borrowing costs, if they use credit cards or loans to make ends meet, it added.

Produced by Xinhua Global Service


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