A recent study broke down the results of decades-high inflation rates indicating that the average household is likely to shell out $5,200 paying the same expenses.
QUICK FACTS:
- Americans will pay over $5,000 more to live the same life over last year according to a study by Bloomberg.
- The report indicates that issues such as the inflation rate and the consumer price index, which has risen by almost 8% in the last year, are causing the average household to spend an extra $433 per month, on average.
- Fatherly’s report on the study’s results called this mostly increase “a hefty, even gargantuan ask for anyone,” particularly for parents struggling to keep their families afloat.
- Further increases could be expected with increased tariffs on Russia in the works and an all-out ban on Russian oil.
MORE DETAILS FROM THE STUDY:
- “Inflation will mean the average U.S. household has to spend an extra $5,200 this year ($433 per month) compared to last year for the same consumption basket,” Bloomberg Economics reports.
- “The excess savings built up over the pandemic, and increases in wages, will cushion those costs, and allow spending to expand at a decent pace this year. But accelerated depletion of savings will increase the urgency for those staying on the sidelines to join the labor force, and the resulting increase in labor supply will likely dampen wage growth.”
BACKGROUND:
- Initial pandemic financial strain was cushioned by programs like the Child Tax Credit, however, with the economy sagging under the strain of government programs and reluctance to re-enter the workforce by some, the inflated price of necessities is becoming a growing problem.
- Information Liberation reported that a gallon of Horizon organic milk is selling for $8 now on the East Coast.
