Story perspectives

Rising Prices Hit Low-Income Families Amid Economic Divide

1/15/2026

Summary

Story summary

In December 2025, household necessity prices rose despite steady overall inflation, hitting lower-income groups hardest.
Economists describe a 'K-shaped' economy, with high earners still spending while lower-income households struggle.
Bank of America economists warn that relying on high earners is risky as wage growth slows.
U.S. President Donald Trump has prioritized affordability, proposing mortgage bond purchases and capping credit card interest rates.

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Story summary

In December 2025, household necessity prices rose despite steady overall inflation, hitting lower-income groups hardest.
Economists describe a 'K-shaped' economy, with high earners still spending while lower-income households struggle.
Bank of America economists warn that relying on high earners is risky as wage growth slows.
U.S. President Donald Trump has prioritized affordability, proposing mortgage bond purchases and capping credit card interest rates.