Inflation reduces buying power as $100 goes a lot less far these days

foxbusiness.com:

Breitbart Business Digest co-author John Carney discusses inflation remaining above the Federal Reserves target rate on Kudlow.

The amount of household staples Americans can buy for a $100 bill has been eroded by nearly one third over the past five years, according to data pointing to the pressure consumers are facing due to the compounding effects of high inflation.

NielsenIQ's 2024 Consumer Outlook shows the cost of fast-moving consumer goods (FMCG) including groceries and other necessities like toiletries has soared by 31% since 2019, and indicates the problem will get worse, as wage growth is expected to lag behind the consumer price index (CPI) this year.

A new report from NielsenIQ shows the cost of household necessities in the U.S. has surged 31% since 2019, putting pressure on consumers. (Photo by Paola Chapdelaine for The Washington Post via Getty Images / Getty Images)

To put it in perspective, the Daily Mail, which first reported on the data, noted that in 2019, a shopper with $100 to spend could purchase a 32-item cart full of items like milk, bathroom tissue and cereal. But today, a customer with the same amount would have to put ten of those items back on the shelf to stay on budget. 

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Calculations from Moody's Analytics chief economist Mark Zandi shared recently with FOX Business show Americans are paying onaverage $784 more each month compared with the same time two years ago, and $1,069 more compared with three years ago, before the inflation crisis began. 

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Inflation has remained above the Federal Reserve's 2% target rate for years, ravaging household