Data-Driven Investigation of Inflation Concerns Caused by COVID-19 Pandemic in the U.S.

Abstract

While the end of the COVID-19 pandemic was declared in May 2023, it is necessary to analyze data collected by the Household Pulse Survey (HPS) to understand Americans’ perceptions of inflation during the COVID-19 pandemic. A total of 574,265 samples were analyzed with ANOVA, Tukey’s Multiple Comparison tests, and dominance analysis to explore disparities in expense difficulty across various demographic and socioeconomic groups. Results revealed significant racial disparities, with Black individuals facing the most challenges, followed by mixed-race, White, and Asian respondents. Transgender individuals encountered the highest hurdles among genders. Separated individuals experienced the most financial challenges based on marital status, while renters struggled more than homeowners regarding property status. Geographical variances revealed that the District of Columbia experienced the simplest challenges while Mississippi faced the most difficult ones. Dominance analysis highlighted household income and education levels as pivotal factors and indicated an inverse correlation between total household income and expense difficulty among low-income households. Disparities arose when oil and gas prices decreased, while the difficulty of paying full energy bills did not follow that trend. The most substantial discrepancy was observed between people’s difficulty with expenses and CPI data, which implied questions about the accuracy of CPI in reflecting consumer trends. Future research that considers additional variables would be helpful to gain a more comprehensive understanding of individuals’ perceptions of inflation during the COVID-19 pandemic.