Inflation can potentially impact different groups in different ways, including women. Does inflation disproportionately hurts women?
There are a few reasons why women may be particularly vulnerable to the effects of inflation. Firstly, women tend to have lower incomes than men on average and may be more likely to work in lower-paying jobs or in sectors that are particularly vulnerable to inflationary pressures. This means that rising prices for basic goods and services can have a disproportionate impact on their ability to make ends meet.
Secondly, women are more likely to be responsible for household budgeting and managing family finances, which means they may bear the brunt of any price increases or inflationary pressures. This can lead to increased stress and financial insecurity, particularly for single mothers or low-income households.
Finally, inflation can also exacerbate existing inequalities and discrimination, particularly for women who may already face barriers in accessing education, healthcare, and other essential services. For example, if the cost of healthcare or education increases due to inflation, this may disproportionately impact women who are more likely to be primary caregivers or have limited access to financial resources.
It is worth noting that the impact of inflation can vary depending on individual circumstances, and many factors can influence how different groups are affected. And it’s true that inflation disproportionately hurts women.
The negative impact of rising prices on women is not just short-term but has long-term implications for their financial well-being. The Bank of America Institute found in January that women’s 401(k) balances are just two-thirds that of men.
“Because of both [the] COVID and inflation crisis, women are much more likely to have broken into their retirement savings,” said Ariane Hegewisch, program director of employment and earnings at The Institute for Women’s Policy Research.
“Debt is much higher, [and] rental costs have gone up. So, there’s now an even bigger hole in retirement or in wealth or any kind of security right the financial security that [women] may have, and that needs to be rebuilt.”
The Washington Center’s Madowitz said that the Federal Reserve’s aggressive interest rate hikes in its fight against inflation could be “the opposite of helpful in improving women’s economic health and opportunity” in the near term.
The Fed has been raising rates since last year when the overnight was set at zero. Currently, it sits in a range between 4.75% and 5%. Because of this, some are worried that the process of cooling down the economy will have an outsized impact on women, particularly women of color.
Also read: Weekly inflation hits 34 percent in Pakistan
