by CrimsonRunner
I’ve been telling people for a while now that the unprecedented access to consumer credit is going to form a temporary buffer before the interest rate hikes actually affect inflation and consumers running out of debt to borrow will potentially cause the hardest landing ever.
US inflation means families are spending $709 more per month than two years ago
New York
CNN
—
US inflation has had a snowballing effect on family budgets.The typical American household spent $709 more in July than they did two years ago to buy the same goods and services, according to Moody’s Analytics.
That figure underscores the cumulative impact high inflation has had on consumer finances — even as price growth has cooled considerably in recent months.
“High inflation of the past 2+ years has done lots of economic damage,” Mark Zandi, chief economist at Moody’s Analytics, wrote in a post on X, the platform formerly known as Twitter.