Inflation forcing Americans to spend $709 more per month than 2 years ago: economist
John Lonski discusses how President Biden said that the ‘Inflation Reduction Act’ has less to do with inflation than originally claimed on ‘Maria Bartiromo’s Wall Street.’
Americans are spending $709 more per month on everyday goods and services than they did two years ago, according to Moody's Analytics.
Moody's chief economist Mark Zandi made the statement Friday on X, formerly known as Twitter, as part of his analysis ofJuly's consumer price index report. Despite the jarring increase in cost, Zandi say inflation is moderating, with just a 0.2% increase from June to July.
«To be sure, the high inflation of the past 2+ years has done lots of economic damage. Due to the high inflation, the typical household spent $202 more in a July than they did a year ago to buy the same goods and services. And they spent $709 more than they did 2 years ago,» Zandi wrote.
«But the trend lines look good, and suggest inflation is set to moderate further. Vehicle prices will decline more, so too will electricity prices, and the growth in the cost of housing will slow further. The biggest worry is the jump in oil prices, which bears close watching,» he added.
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Americans are spending $709 more per month on everyday goods and services than they did two years ago, according Moody's Analytics. (Joe Raedle / Getty Images)
Scorching-hot inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent. The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily affected by price fluctuations.
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