Economists warn Americans should budget an extra $5,200 this year to combat effects of inflation
Bloomberg economists say that Americans should considering budgeting an extra $5,200 this year — or $433 monthly — in order to fight the effects of inflation.
The U.S. Consumer Price Index has indicated that prices across the board have skyrocketed at the fastest pace since 1982.
In a Tuesday report, Bloomberg economists Anna Wong and Andrew Husby warned that inflation is set to cost the average U.S. household at least $5,200 more year over year.
Approximately $2,200 of that inflation tax will come as a result of higher food and energy prices, and inflation is only set to get worse over the next several months.
In the report, the economists said, “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.”
On Tuesday night, Bloomberg Markets tweeted a graphic illustrating the rising costs and captioned it, “Inflation will mean the average U.S. household has to spend an extra $5,200 this year compared to last year for the same consumption basket, according to estimates by Bloomberg Economics[.]” – READ MORE
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