Inflation costing US households extra $175 per month, economist says

319
SHARES
2.5k
VIEWS

You Might Also Like


– Advertisement –


Due to supply constraints and massive government spending, inflation has become an additional tax on middle-class Americans as they come out of the COVID lockdown.

– Advertisement –

Over the past few months, Allison, the wife and mother of a child and teenager in Chicago, says she’s been spending about $50 more each week on groceries to feed her family — and that’s on the discount supermarket chain, Aldiz. Is.

“I used to spend $70 a week, but suddenly this summer, I noticed I couldn’t leave the store without spending at least $120,” said Alison, who works in education.

advertisement

Like the millions of Americans who have income did not keep pace with inflationup 5.3 Percent Compared to a year ago in August – Allison and her family are feeling the pinch of rising cost of living and giving up on some things just to feed themselves.

His family is crying now. “There’s no more splurge like going to Home Depot to buy an extra plant or eat out,” Ellison said.

– Advertisement –

Due to supply constraints and massive government spending, inflation has become an additional tax on middle-class Americans as they come out of the COVID lockdown.

Bacon becomes latest victim of supply chain disruption, inflation

For households earning a US median annual income of about $70,000, the current inflation rate has forced them to spend another $175 a month on food, fuel and housing, according to Mark Zandi, chief economist at Moody’s Analytics.

“It’s the equivalent of a full grocery, electricity or cellphone bill,” Zandi said.

Although government officials have called inflation “temporary”, it is running at a 30-year high, and has been for months.

unforeseen supply-chain issuesIncluding a record number of more than 70 cargo ships waiting to dock at the port of Los Angeles, it has been difficult to predict when prices will stabilize.

To make matters worse, the shortage of trucks has aggravated the situation and is showing no signs of easing. Everything from wood to electronics is becoming rarer and more expensive.

Many consumer experts don’t see any immediate relief — some to an increase in credit-card debt. During the pandemic, many consumers paid off debt because they were spending less when collecting large unemployment checks.

But since April, credit-card balances and delay rates have declined for most of the pandemic, according to Zandi. Crime is 1.54 per cent as of September 21, compared to 1.30 per cent on April 21.

“Price increases will continue through the middle of next year,” predicted Gordon Haskett analyst Chuck Grom, pointing to an announcement from PepsiCo this week that consumers Can expect another round of price hike in early 2022 On the company’s snacks and beverages.

In fact, a 10-ounce bag of Lay’s potato chips — Frito-Lay is owned by PepsiCo — cost $3.75 in August, 50 cents more than a year ago at Dollar General stores in Southwest, Grom said.

Prices of other items have also increased across the discount chain, including a dozen 12-ounce cans of Coca-Cola, which cost $5.75 in August — 50 cents more than in 2020 — at its Southwest stores, and a half-gallon of 2 percent store-brand milk, which now costs $4.49, 74 cents more than a year ago, according to Grom. At Family Dollar stores in the Northeast, a 12-pack of Coke costs $6.90, up $1.50 in August, and a can of Folger’s coffee costs 85 cents more, $8.80, they found.

In the Big Apple, grocery chain Gristedes and D’Agostino’ According to the owner, prices have gone up by 15 per cent on chicken wings and beef, 10 per cent on milk and 5 per cent on eggs, while non-food related items have gone up by about 10 per cent. John Katsimetidis.

Get Granthshala Business on the go by clicking here

What’s more, some consumers are reporting that covering their ordinary expenses has become more difficult.

According to the October 6 Census Bureau’s Household Pulse survey, the number of American households that report that it is “very difficult” to pay their ordinary expenses has risen 8 percent since the beginning of August to 26.5 million.

Allison recently contacted a debt-relief attorney, Leslie Tyne, to help her consolidate and reduce her outstanding debt, which includes a hefty student loan.

“My business has exploded,” Tyene told The Post.


– Advertisement –

Related News

Next Post

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending News