If you haven’t noticed, everything is more expensive.
So much so, experts are saying you need to have at least $5,200 more on hand to keep up. In 2020 the Bureau of Labor Statistics said the average spending on food at home was $4,942 annually or about $412 per month for U.S. households.
Bloomberg recently reported that according to their economists, the inflated costs for everyday items has pushed US households to shell out thousands more just to maintain their normal way of life.
“Accelerated depletion of savings will increase the urgency for those staying on the sidelines to join the labor force, and the resulting increase in labor supply will likely dampen wage growth,” they said.
At the top of list is food and gas prices.
Heating, auto gasoline and groceries account for $2,200 of 2022’s inflation, the economists pointed out, as reported in The Insider.
Unsurprisingly, this is predicted to devastate low-income households over time as they don’t have enough savings to absorb the expensive blows. Additionally, wage growth is expected to take a nosedive through the year as more people are searching for jobs.
“Even if the cohort’s average wages climb a healthy 10% in 2022, food and energy inflation could fully offset their pay growth,” the Insider points out.
Bloomberg reported that prices for crude oil could climb as high as $160 per barrel, increasing gas to above $5 per gallon indefinitely. The average cost in the US for gas was $4.24 as of mid-July, which is astronomical.