Inflation forces Americans to spend $709 per month over two years: economist
Americans spend $709 more per month on everyday goods and services than they did two years ago, according to Moody’s Analytics.
Mark Zandi, chief economist at Moody’s, made the comment Friday on X, formerly known as Twitter, as part of his analysis of Consumer Price Index report for July. Despite the stark increase in cost, Zandi says inflation is moderate, with an increase of just 0.2% from June to July.
“Certainly high inflation over the past two years or more has done a lot of economic damage. Given the high inflation, the typical household spent $202 more in July than they did a year ago to buy the same goods and services. And they spent $709 more than they did two years ago “.
“But the trend lines look good, and suggest that inflation will move towards more moderation. Car prices will fall more, as will electricity prices, and housing cost growth will slow further. The biggest concern is higher oil prices, which warrants close monitoring.”
Create hot inflation severe financial stress For most American families, who have to pay more for daily necessities like food and rent. Low-income Americans disproportionately bear the burden, as their already onerous paychecks are deeply affected by price fluctuations.
Consumers continued to see some delays in July. Used car and truck prices fell 1.3% during the month and were down 5.6% from the same period a year ago. Airline ticket prices also fell 8.1% in July, after falling in April, May and June.
The data shows that while inflation has fallen from a peak of 9.1%, it is still well above the Fed’s target of 2%, despite its aggressive rate hike campaign. The US central bank approved 11 rate hikes over the course of 16 months, bringing the federal funds rate to the highest level since 2001.
The Federal Reserve could resort to more rate hikes later this year, but the Fed Chairman Jerome Powell No advertisements have been made.
Fox News’ Megan Heaney contributed to this report.