Have You Skipped Essential Expenses Due to Rising Prices? Take Our Poll
The June Consumer Price Index (CPI) revealed an unadjusted 12-month increase of 9.1%, but people still managed to buy the things they needed or wanted. The U.S. Census Bureau reported that retail sales rose by 1% in June.
“People did not fold in the face of the Ukraine shock and the subsequent surge in food and energy prices,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, told Industrial Distribution. “Instead, they ran down a small part of their pandemic savings in order to keep up their discretionary spending.”
Still, the CPI report “was pretty ugly,” Mark Zandi, chief economist at Moody’s Analytics, told Yahoo! Finance. “It is starting to have very devastating financial impacts on families. For the typical American family, they’re now having to shell out almost $500 more a month to buy the same goods and services that they were purchasing a year ago because of the higher inflation. And just for context, the typical American family makes about $60K a year. So if you do the arithmetic, you get a pretty clear sense of the financial pain and suffering that’s resulting.”