Record gas prices and creeping inflation will cost the average American family $3,000 more per year, according to Yardeni Research.
"In addition, we estimate that the average household is currently spending at least $1,000 [according to a seasonally adjusted annual rate] more on food as a result of rapidly rising grocery prices," Edward Yardeni, the president of the firm, wrote on LinkedIn. "That’s $3,000 less money that households have to spend on other consumer goods and services, which also are experiencing rapid price increases.", a new record high surpassing the 2008 record of $4.
Consumer prices in the U.S. surged 7.5% in January, the most since 1982, while prices at the producer level jumped 9.7%, the highest ever. According to the U.S. Bureau of Labor Statistics, U.S. grocery prices increased an average of nearly 11 percent over last year. On average, American families are paying about $385 more a month for just about everything, but for some, costs are even higher according to abased on a new report from Sen. Mike Lee, R-Utah, ranking member of the Joint Economic Committee.
"They see a risk that inflation will remain higher than previously expected over the next three years, coming largely from the labor market. More than two-thirds of survey respondents cite rising wages as a risk factor," David Altig, president of the National Association of Business Economics and executive vice president and director of research at the Federal Reserve Bank of Atlanta, said last month.