Hold onto your wallets, inflation is costing the average U.S. household nearly $300 more a month, according to Moody Analytic analysis, CNBC reported.
“It is going to get worse before it gets better,” Moody’s senior economist Ryan Sweet said.
Sweet, who did the analysis, stated that the real monthly cost consumers will be paying for their services is $296. According to Sweet, this figure is based upon the most recent readings on consumer prices. They rose 7.9% in February, compared to a year ago according the U.S. Department of Labor.
Prices for gas, food and housing drove the February price increases to an all-time high, CNN Business.
The biggest increase in food prices since July 1981 was 7.9% over the past 12 month. According to the news outlet, grocery store prices rose by 8.6% in the same time period, which is the fastest increase since April 1981.
The rise in gasoline prices contributed almost a third to February’s inflation increase. They soared 6.6%. CNN reported that they have risen 38% over the past 12 months.
A study by Wells Fargo entitled, “Inflation: Same Storm, Different Boats,” really sums up what Americans are facing, which is the strongest inflation in nearly 40 years.
Based on the Consumer Expenditure Survey, (CPI), the study identified the three demographics most likely to feel the pinch.
According to the survey, middle-income consumers who have inflation are half as high as those at the highest and lowest income ends.
Wells Fargo reported that the highest rise in living expenses was seen among Latinos and Hispanics compared to other groups.
The increase will be felt by millennials more than their boomer counterparts. The survey found that inflation among consumers aged 35-44 in the past year was more than one point higher than for those 65 and over.