A growing share of lower-income Americans are struggling to get by financially as their wages fail to keep up with inflation, according to a recent analysis. Roughly 29% of lower-income households are living paycheck to paycheck, up slightly from 2024 and from 27.1% in 2023, data from the Bank of America Institute shows. The financial firm defines that as spending more than 95% of household income on necessities such as housing, gasoline, groceries, utility bills and internet service.
Main Idea: A new Bank of America report says more U.S. households are living paycheck to paycheck as inflation and slow wage growth keep squeezing lower-income families.
Key Points:
More households may struggle to pay for food, housing, and bills as wages lag behind rising prices, squeezing workers and small businesses.
No clear positive impact identified.
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Named Bank of America Institute economist quoted on inflation and wage pressure.
Named economist quoted for context on slowing wage growth; supporting rather than central.
Central benchmark in the inflation discussion, but not an acting body in this story.
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