We know that inflation is causing havoc in our country and around the world. We live in a rural area and one thing most people don’t know is that rural Americans are not included in inflation figures and for people like us, the cost of living may be rising even faster. The main indicator of inflation, the Consumer Price Index, is compiled by looking at the changes in price specifically urban Americans pay for a set basket of goods. Those living in rural America are not surveyed. This poses a problem. People living outside America’s cities represent 14% of the U. S. population, or around 46 million people, and by not assessing rural inflation, it may be masking what’s called a rural-urban inflation gap. To access the gap, those that study the economy in rural America say they need to use other pricing data and analysis to build a picture of price growth in nonurban areas.
Experts say that data suggests rural Americans suffer more as the cost of living goes up. Rural inflation may be more harmful than urban inflation, with price increases likely lingering longer than in cities.
