It’s CNN Business, so, maybe they’re more free to tell the truth?
US inflation means families are spending $709 more per month than two years ago
US inflation has had a snowballing effect on family budgets.
The typical American household spent $709 more in July than they did two years ago to buy the same goods and services, according to Moody’s Analytics.
That figure underscores the cumulative impact high inflation has had on consumer finances — even as price growth has cooled considerably in recent months.
“Price growth”. If I’m raising your cost of a product 20 cents every month for 2 years, and only raising it 5 cents a month now, it’s still going up after going up a lot
“High inflation of the past 2+ years has done lots of economic damage,” Mark Zandi, chief economist at Moody’s Analytics, wrote in a post on X, the platform formerly known as Twitter.
Most of that increase in spending is driven by housing costs, which have surged, Zandi told CNN in an email on Friday. He added that families are also spending more at the grocery store; on buying, maintaining and insuring vehicles and on recreational services like cable.
Even though prices have soared, real earnings, which adjust for inflation, are stuck at late 2019 levels.
“Real earnings remain below what they would have been if not for the pandemic and the Russian war, which is weighing on the collective psyche,” Zandi told CNN in an email on Friday.
WTF does the Ukraine-Russia conflict have to do with this? Does anyone think it is causing people to not make as much? Possibly one of the dumbest things I’ve read today. Maybe this month.
Looking at just the last year, Zandi calculates that the typical household spent $202 more this July than they did a year ago to buy the same goods and services.
That’s significant, but it’s still below the peak of $536 for this year-over-year metric — a record hit back June 2022, when gas prices spiked above $5 a gallon for the first time.
But, how much more were they paying in July 2022 vs 2021 vs 2020 vs 2019? $500 or so?
And not one mention of Joe Biden. Imagine this was happening under Trump: he would named in almost every single paragraph.
I could see some editing for accuracy was required.
Mr Teach: Possibly one of the dumbest things I’ve read today.
Regarding the respected Mr Zandi’s comment regarding the impact of the Russian invasion on US household income.
So why does Mr Teach accept the rest of Mr Zandi’s other commentary?
BTW, the “typical” US household, which Mr Zandi didn’t define, spends some $5000-$7000 every month. So, a monthly $202 increase is about a 3% increase over the previous year. Note that 2% inflation is targeted as ideal.
To a retiree on SS, $202 is significant. To a Bezos, not so much. On the other hand the Social Security COLA for 2023 is 8.7%!!