Bidenomics: Inflation hurting rural residents more than those in urban areas

Inflation is affecting all, but more so in rural areas because of high fuel and energy prices.

The price of gas and diesel has negatively affected the farming community, but also people who have to drive long distances to work, school or the grocery store. A recent analysis from Iowa State University found that it costs rural households $2,500 more a year to pay for gasoline than it did two years ago.

The Federal Reserve’s preferred inflation gauge accelerated more than expected in June, according to new data released Friday, a worrisome sign as central bankers try to combat higher prices with the steepest interest rate hikes in decades.

William Polley, economics professor at Western Illinois University-Quad Cities, said this is a tricky situation for the Federal Reserve this time around.

“That is a challenge this time that is a little bit different compared to the 1970s, and the fact that it is energy and food, does affect people in rural areas quite a bit, maybe disproportionately compared to urban areas,” Polley said.
green grass field and trees by Tomasz Filipek is licensed under Unsplash