Inflation will cost families an additional $5,520 per year, increasing from a projection in March, according to Moody’s.
President Biden’s 40-year-high inflation will cost American households on average an extra $5,520 in 2022, or $460 per month, a Moody’s analysts projected.
In March, that projection was less. Bloomberg estimated families would be charged an extra $5,200 in 2022, or $433 per month, 27 dollars less.
Moody’s compared the average household spending in May of 2021 to the years of 2018 and 2019, when the annual inflation rate was 2.1 percent.
Moody’s Analytics senior economist Ryan Sweet told the New York Post:
Having inflation at 8.5% on a year-ago basis, compared with the 2.1% average growth in 2018 and 2019, is costing the average household $346.67 per month to purchase the same basket of goods and services as they did last year. However, the pure cost for households for having inflation running at 8.5% is $460.42 per month.
The soaring costs are altering consumer habits, June’s BMO Real Financial Progress Index survey revealed:
- 42% are changing how they shop for groceries. This includes opting for cheaper items, avoiding brand names, and buying only the essentials.
- 46% are either dining out less or consciously spending less when dining out.
- 31% are driving less to offset the soaring cost of gas.
- 23% are spending less on vacations or canceling them altogether.
- 22% are taking measures such as canceling subscriptions to the gym, cable, etc.
Inflation has been fueled by costly subsidy packages the Democrats passed last year, along with the war waged by Biden on American energy.
Biden’s war on American energy includes driving up private and public financing costs of oil drilling, halting drilling on public lands, and canceling the Keystone pipeline.
On Friday, the Bureau of Labor Statistics revealed energy prices had soared and contributed to inflation. The price of electricity has increased 12 percent and gasoline has increased over 48 percent in the last 12 months. Propane, along with kerosene and firewood, increased 28 percent. Utility (piped) gas service has also increased over 30 percent.
Food is also more expensive. The Bureau of Labor Statistics reports that in the last 12 months, fruit and vegetables have significantly increased in price:
- Apples six percent
- Dried beans ten percent
- Peas ten percent
- Lentils ten percent
- Potatoes eight percent
According to Sunday polling, 74 percent of respondents said Biden’s soaring gas prices are an “extremely/very important” factor in how they will vote in the midterm elections. Biden’s approval over his management of gas prices is only 27 percent.
Follow Wendell Husebø on Twitter and Gettr @WendellHusebø. He is the author of Politics of Slave Morality.