A new inflation analysis by a noted financial firm is frightening in its projection in terms of how much more average Americans will pay this year under current conditions many have blamed on President Joe Biden.
According to the Moody’s analysis, many families will lose a full month’s income to inflation, essentially being forced to live 12 months on 11 months’ worth of pay.
As inflation reaches a 40-year-high under Biden, it will American households on average an extra $5,520 in 2022, or $460 per month, Moody’s analysts projected. That will hurt lower-income families and earners the hardest.
Breitbart News reports:
In March, that projection was less. Bloomberg estimated families would be charged an extra $5,200 in 2022, or $433 per month, 27 dollars less.
Moody’s compared the average household spending in May of 2021 to the years of 2018 and 2019, when the annual inflation rate was 2.1 percent.
“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,” Moody’s Analytics senior economist Ryan Sweet told the New York Post.
The soaring costs are already forcing consumers to change their spending habits, June’s BMO Real Financial Progress Index survey revealed:
- 42% are changing how they shop for groceries. This includes opting for cheaper items, avoiding brand names, and buying only the essentials.
- 46% are either dining out less or consciously spending less when dining out.
- 31% are driving less to offset the soaring cost of gas.
- 23% are spending less on vacations or canceling them altogether.
- 22% are taking measures such as canceling subscriptions to the gym, cable, etc.
Economists say that the inflation has largely been triggered by trillions in federal spending under Biden along with his anti-fossil fuel policies; gasoline and diesel prices are now triple what they were on former President Donald Trump’s last day in office in many parts of the country. Elsewhere, they have at least doubled.
Breitbart News added:
On Friday, the Bureau of Labor Statistics revealed energy prices had soared and contributed to inflation. The price of electricity has increased 12 percent and gasoline has increased over 48 percent in the last 12 months. Propane, along with kerosene and firewood, increased 28 percent. Utility (piped) gas service has also increased over 30 percent.