The experts are saying that inflation is going to get worse before it gets better, which is incredibly hard to hear, considering that a recent study has found that Americans are spending on average an extra $460 per month due to inflation!
Moody’s Analytics senior economist Ryan Sweet calculated the figure based on data from by the Bureau of Labor Statistics that showed the Consumer Price Index had jumped 8.6% in the 12-month period ending May 31, the largest increase since December 1981!
Sweet compared average US household spending in May to what would have been spent in 2018 and 2019, when annual inflation averaged 2.1%.
He told the New York Post, “Having inflation at 8.5% on a year-ago basis, compared with the 2.1% average growth in 2018 and 2019, is costing the average household $346.67 per month to purchase the same basket of goods and services as they did last year.”
“However, the pure cost for households for having inflation running at 8.5% is $460.42 per month.”
Sweet also found that the food index increased 10.1%, the first jump of 10% or more since March 1981, and that grocery store price increases were even larger.
Grocery prices rose 11.9%, the largest 12-month spike since April 1979, with items like meats, poultry, fish, and eggs increasing a whopping 14.2% and fruits and vegetables going up 8.2%.
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