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Higher-income Americans and those with college degrees have ramped up their spending more quickly in the past three years than lower-income households and those without college diplomas, according to new data released Tuesday, evidence of worsening ine…<\/span><\/p>\n<\/div>\n WASHINGTON — <\/span>Higher-income Americans and those with college degrees have ramped up their spending more quickly in the past three years than other consumers, according to new data released Tuesday<\/a>, evidence of worsening inequality that may explain some of the growing pessimism<\/a> about the economy. <\/p>\n The data, released by the Federal Reserve Bank of New York, also show that in the final three months of last year, lower-income and rural households faced higher inflation than higher-income households. The spending data focuses only on goods excluding autos, and does not capture likely spending by higher-income households on travel, restaurants and entertainment. <\/p>\n The figures add support to the notion of a \u201cK-shaped\u201d economy<\/a>, in which upper-income Americans are fueling a disproportionate share of the consumption that is the primary driver of the economy, while lower-income households see fewer gains. Poorer households in general often experience higher inflation, with a greater share of their spending being set aside for goods that have seen prices soar since the pandemic, things like housing, groceries, and utilities. <\/p>\n The New York Fed’s data show that households with incomes of $125,000 and higher have boosted their spending 2.3%, adjusted for inflation, since 2023, while middle-income households \u2014 those between $40,000 and $125,000 \u2014 have increased their spending by 1.6%. Those earning below $40,000 have lifted their spending by just 0.9%, the report showed. <\/p>\n The figures are an addition to the New York Fed’s economic heterogeneity indicators<\/a>, a series of data sets intended to track variations in the economy by geographic region and demographic and income groups. <\/p>\n<\/div>\n