The recent rise in inflation is coming at a heavy price for American households, with a new analysis from Moody’s showing the American families are spending an average of $250 more per month.
Senior Moody’s economist Brian Sweet crunched the numbers, and found Americans are being squeezed at the register and at the gas pump to the tune of an additional $250 a month due to growing inflation. “A lot of people are hurting because of high inflation. $250 a month — that’s a big burden,” Sweet told the Wall Street Journal.
The annual rate of inflation hit a 40-year high in January amid the ongoing supply and labor shortages caused by the coronavirus pandemic. The federal government reported an increase of 7.5 percent that is primarily hurting the wallets of low-income households, with the main increases hurting consumers at grocery stores and gas pumps.
Because low and middle income households consume the majority of fuel in the US, the inflation rate is particularly impactful for them. Experts are hopeful the rise in inflation has peaked and families will begin to see the inflation rate drop as the pandemic tapers off and supply chains are back up and running.
Capital Economics U.S. economist Andrew Hunter wrote that there are “some encouraging signs underneath the hood that recent upward pressure from goods shortages is fading.”
ARTICLE: LAURA SPIVAK
MANAGING EDITOR: CARSON CHOATE
PHOTO CREDITS: WALL STREET JOURNAL
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