Inflation is not going anywhere for a while. It will be a permanent fixture of the economy for quite some time due to its sticky nature.
This was pretty much conceded by Federal Reserve Chair Jerome Powell and the Federal Open Market Committee (FOMC).
Unfortunately, despite President Joe Biden claiming that inflation has gone up “hardly at all,” it is estimated that Americans are paying an additional $11,500 this year to sustain their living standards, according to a new report from Nerd Wallet.
Total monthly household expenditures are up $961, and grocery spending is up $101, according to the analysis. Shelter is up $120, while household utilities are also up about $70. Gasoline is up more than $200.
“Those who earn (and therefore spend) more will see more dramatic dollar increases. Those who earn less may see less dramatic dollar jumps, but the impact of these rising prices could be more significantly felt,” the website wrote.
With more people relying on debt to pay for basics, higher interest rates that have yet to make a dent in inflation will add to other debt challenges.
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