Higher Inflation Is Probably Costing You $276 a Month
Who is feeling the price squeeze the most? Here is a demographic breakdown of inflation’s impacts.
www.wsj.com
And the middle class (moi) is hit the hardest.
Middle-class households were squeezed harder than other groups, with prices up 6.7% in December.
“A lot of people are hurting because of high inflation. $276 a month—that’s a big burden,” said Ryan Sweet, a senior economist at Moody’s Analytics who conducted the analysis. “It really hammers home the point of ‘what is the cost of inflation?’”
Hispanic or Latino households faced inflation of 7.1%, thanks again to a disproportionately large share of spending on used autos and gasoline. That compared with 5.6% for Asian families, who tend to earn more than the average American household. (SO MUCH FOR SYSTEMIC RACISM IN AMERICA)
$276/Month is a used car payment 90% of a weekly grocery bill for our family. Fed will raise rates in March and likely by 50ps so those with those pesky credit card balances will pay more.
The news only gets worse Toyota, Ford, and GM are suspending or scaling back production at several plants as Freedom Convoy protests continue to disrupt a vital trade route along the US–Canada border. Meanwhile, the US Department of Homeland Security warned that brewing copycat protests in the US could threaten the Super Bowl this weekend.
Elections have consequences.
As usual the middle class feels the squeeze. I am not sure what the voters were thinking in Nov 2020...likely many now want their vote back.
