Inflation is falling, but Americans are still paying an extra $680 a month due to high prices
Federated Hermes chief equity strategist Phil Orlando on the Fed's rate hikes being 'over,' the holiday retail outlook and remaining Q3 earnings.
Inflation may be cooling, but the average American is still shelling out a lot more money for everyday necessities.
The typical U.S. household needed to pay $205 more a month in October to purchase the same goods and services it did one year ago because of still-high inflation, according to new calculations from Moody's Analytics chief economist Mark Zandi.
Americans are paying on average $680 more each month compared with the same time two years ago.
The analysis suggests that while inflation has fallen from the highs of mid-2022, many families have yet to see material relief.
OCTOBER INFLATION BREAKDOWN: WHERE ARE PRICES STILL RISING THE FASTEST?
The Labor Department reported Tuesday that the consumer price index, a broad measure of the price of everyday goods including gasoline, groceries and rents, was unchanged in October from the previous month. Prices climbed 3.2% on an annual basis.
But when compared with January 2021, shortly before the inflation crisis began, prices remain up a stunning 17.62%.
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 impacted by price fluctuations.
A customer looks over merchandise at a store on March 14, 2023, in Miami, Florida. (Joe Raedle / Getty Images)
The consumer price index is still running well above the typical pre-pandemic rate, and the cost of necessities like food, gasoline, rent and child care remain far more
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