Economist says inflation is costing US households an extra $175 a month
For the past two months, Alison has been the wife and mother of a toddler and a teen ChicagoShe says she spends about $50 more each week on groceries to feed her family — and that’s at a discount supermarket chain, Aldi’s.
said Alison, who works at education.
Like the millions of Americans who have earned Did not keep up with inflation – above 5.3 percent In August compared to last year – Allison and her family are feeling the pinch of the rising cost of living and giving up some things just to make ends meet.
Her family is floundering now. “There’s no more wastefulness like going to the Home Depot to buy an extra plant or eating out,” Allison said.
Driven by shortages of supplies and massive government spending, inflation has become an additional tax on middle-class Americans moving out of the United States Corona virus disease closures.
For families with a median annual income in the United States of about $70,000, current inflation has forced them to spend another $175 a month on food, fuel and housing, according to Mark Zandi, chief economist at Moody’s Analytics.
“This is equivalent to a full grocery, electricity, or cell phone bill,” Zandi said.
Although government officials have described inflation as “temporary,” it has reached its highest level in 30 years, and has been for months.
Unexpected supply chain issues, including the record number of more than 70 cargo ships waiting to dock in the Port of Los Angeles, making it difficult to predict when prices will stabilize.
To make matters worse, the shortage of truck drivers has exacerbated the situation and has shown no signs of abating. Everything from wood to electronics is getting scarcer and more expensive.
Many consumer experts see no immediate relief on the horizon — some are preparing for an increase in credit card debt. During the pandemic, many consumers have paid off debts because they were spending less while collecting larger unemployment checks.
But since April, credit card balances and delinquency rates have risen after they slowed for most of the pandemic, according to Zandi. Delinquencies were at 1.54 percent on September 21, compared to 1.30 percent on April 21.
“The price increases will continue into the middle of next year,” Gordon Haskett analyst Chuck Groom predicted, referring to PepsiCo’s announcement this week that consumers You can expect another round of price hikes in early 2022 Company snacks and drinks.
In fact, a 10-ounce bag of Lay’s — Frito-Lay owned by PepsiCo — cost $3.75 in August, up 50 cents from the previous year at Dollar General stores in the Southwest, Groom said.
Prices for other items in the discount chain are also up, including 12 12-ounce cans of Coca-Cola that cost $5.75 in August — 50 cents more than in 2020 — at its Southwest stores, and a half-gallon down 2%. According to Grom, the brand’s milk in stores is now $4.49, 74 cents more than a year ago. At Family Dollar stores in the Northeast, a 12-pack of Coca-Cola cost $6.90 in August, up $1.50, and a can of Folger coffee cost 85 cents more, $8.80, it found.
In the Big Apple, grocery chains Gristedes and D’Agostino Prices have increased by up to 15 percent on chicken and beef wings, 10 percent on milk and 5 percent on eggs, while non-food prices are up about 10 percent, according to the owner. John Katsimatidis.
Furthermore, some consumers report that it has become difficult to make ends meet.
The number of US households reporting it is “too difficult” to pay their usual expenses has risen 8 percent since early August, to 26.5 million, according to the Census Bureau’s Oct. 6 Household Pulse Survey.
Alison recently reached out to debt forgiveness attorney Leslie Tyne to help her consolidate and reduce her outstanding debt, which includes a huge student loan.
“My business has exploded,” Taine told The Post.