President Biden's 40-year high inflation rate will cost American families an average an additional $5,520 in 2022, or $460 a month, Moody's analysts forecast.
In March, the projection was lower. Bloomberg estimated that families would be charged an additional $5,200 by the end of 2022. That's $433 per month. That's 27 dollars less.
Moody's assessed the median household expenditure in the month of May of 2021 with the years 2018 and 2019 when the inflation rate for each year averaged 2.1 percent.
Moody's Analytics senior economist Ryan Sweet said to the New York Post:
Inflation of 8.5 percent on a year-ago basis, in comparison to 2.1 percent average increase between 2019 and 2018, is costing the average household $346.67 each month to purchase the same range of goods and services that they purchased in the previous year. But the total cost for households with inflation at 8.5 percent would be $460.42 monthly.
The rising costs are transforming consumer behavior, according to in June's BMO Real Financial Progress Index report revealed:
- 42% of people are changing the way they buy food items. This means they are buying lower-cost items, avoiding brand names, and purchasing only the necessities.
- 46% of people are eating out less often or are conscious of eating out less.
- 31% are not driving as much to help offset the rising cost of gasoline.
- 23% of them are either spending less money on vacations or deciding to skip the vacation completely.
- 22% are taking actions like canceling their subscriptions to gyms or cable service, for example.
The rise in inflation has been fuelled by the hefty subsidy packages that the Democrats adopted last year, in addition to the battle initiated by Biden on American energy.
Biden's fight against American energy has resulted in a rise in the costs of financing public and private drilling for oil, halting drilling on public land, and rescinding the Keystone pipeline.
On Friday, the Bureau of Labor Statistics revealed that energy prices have risen and contributed to the increase in inflation. The cost of electricity increased by 12 percent, while gasoline prices have increased by more than 48 percent over the past twelve months. Propane, as well as firewood and kerosene, have increased by 28 percent. Utility (piped) gas services have also increased by 30 percent.
Food items are costlier as well. It is reported by the Bureau of Labor Statistics reports that over the past twelve months, the cost of fruits and vegetables have seen a significant increase in cost:
- Apples six percent
- Dried beans with a tenth of a percent
- Peas at ten percent
- Lentils ten percent
- Potatoes eight percent
According to polling conducted on Sunday, the majority of respondents believed that Biden's record-breaking gasoline prices were an “extremely/very important” factor in how they will decide on their midterm vote. Biden's approval rating for his management of the gas price is only 27 percent.