The average American is spending an extra $341 a month because of inflation, according to Moody's Analytics analysis. Ryan Sweet is a senior economist at Moody's Analytics who conducted the examination. Sweet said, "This is a little less than last month but still a noticeable burden on households." (source)
Sweet came up with the figure by comparing prices for goods and services in April versus those same items when inflation was 2.1%, the average in 2018 and 2019. (source)
Rising inflation ate away at the wage gains of American workers in recent months. On an annual basis, real earnings declined 2.6% in April. The Federal Reserve has also embarked on its most ambitious policy tightening mission. It hiked the benchmark interest rate by 50 basis points in May for the first time since 2000. The Fed has also signaled that similar-sized hikes are on the table as they seek to tame inflation. (source)
Consumers felt the pain of inflation as new car prices increased by 1.7%, airline fares leaped by 18.6%, and sheltering expenses jumped by 0.5%. Food prices at grocery stores rose 0.9% from March and 9.4% from the previous year. (source)
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