Inflation’s Unequal Burden: How Price Shifts Hit Women and Families in Europe

Popular euro-priced hamburgers from well-known fast-food chains no longer cost one euro, and this change affects consumers across the board. The shift is not simply about who buys these products but reflects broader concerns about price sensitivity, taste preferences, and potential health impacts when items are consumed in large or repeated amounts. Inflation is a factor here, and some observers describe the situation with a colloquial term: o-flation.

Economists note that inflation tends to hit households with tighter budgets the hardest, while wealthier groups feel the impact more gradually. Women are frequently overrepresented among the economically vulnerable segments. A professor of economics at UB explains that the gap is real and persistent. Recent surveys show that one in four women earned less than 901 euros per month before the Covid period. Additionally, data indicate that a large share of single-parent households are led by women, underscoring the gendered dimension of economic stress.

Experts highlight that households with fewer resources spend a larger fraction of their income on essential needs, including health and food. This makes them more susceptible to price increases. A professor of applied economics at UdG notes that a recent shopping-basket analysis by OCU found a notable rise in costs over the past year. Items such as private-label cooking oil have become markedly more expensive, while certain fruits, vegetables, and staples show price hikes in the range of 30% to 40%. For families, this translates into an annual incremental expense of around 500 euros.

These patterns are driven by the inelastic demand for basic goods, which makes substitutions harder to find. People may cut back on vacations when prices rise, but reducing heating during the winter months is less feasible. A Caixabank Research analyst highlights this dynamic in a recent article. Eurostat data corroborate the trend: lower-income households allocate a larger share of their budgets to food and housing, while higher-income households spend relatively less on these necessities.

class question

Taking these figures into account, a leading economist estimates that inflation in the EU is higher among the lowest income earners than among those with higher incomes. The gap approaches several percentage points, and early analyses point to troubling implications for Spaniards’ wallets. Even with a slight decline in gross income since the pre-pandemic period, inflation remains above the rate seen then, according to Caixabank’s latest assessments.

There is concern that if the sectors employing the most women take longer to adjust wages in line with price changes, gender pay disparities could widen. While it may be too soon to measure the full effect, current indicators show that women on average earn noticeably less than men. Human capital constraints are also shifting wage dynamics globally, with traditionally male-dominated industries often pushing wages upward more quickly than service-oriented sectors, where productivity can be lower and unionization weaker. A portion of the services sector, especially those activities hit hard by the pandemic, faces continued inflationary pressure and will bear heavier burdens as prices stay elevated.

a mind load

Watching prices rise at the supermarket and comparing household bills can be a source of ongoing frustration. These tasks are disproportionately managed by women. A recent Government of Catalonia study on quality and working conditions shows that 54.7% of women perform most or all household chores. Several studies indicate that women tend to save more due to lower average salaries, which can lead to smaller pensions. Additionally, their position in the labor market is often more vulnerable to job loss, contributing to heightened financial precaution and future planning considerations.

In this year’s EFPA report, about 43% of financial advisors in Spain believe women are more aware than men of retirement-saving importance, compared with around 16% who see the opposite view. The shared concern is that when the same purchase costs more over time, it may weigh more heavily on women than on men, given the longer-term implications for household budgeting and financial security.

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