Gina Bolvin, president of Bolvin Wealth Management Group, discusses commodity movements, expected inflation data, the housing industry and the outlook for consumers.
High inflation continues to cause economic pain for many Americans at the end of 2023, even as price pressures in the economy gradually ease, according to data released by the Federal Reserve on Tuesday. There is.
Findings from the Federal Reserve’s 2023 U.S. Household Economic Well-being Report show that chronic inflation has made the financial lives of about 65% of U.S. adults “worse.” Among respondents, 19% said their financial situation had become “much worse” due to rising prices.
Additionally, 34% of respondents said their family’s monthly income had increased in the past year, while 38% said their expenses had also increased.
Inflation rate rose 3.4% in April as prices continued to rise
People buy produce at a store in Rosemead, California, June 28, 2022. (Frederick J. Brown/via AFP/Getty Images)
As of October 2023, nearly three-quarters (72%) of adults said they were “fairly well” financially, down from 78% in 2021 and the lowest rate since 2016. Ta. This number is much lower among parents. The proportion of parents who said their finances were at least “fair” fell by five percentage points to 64%, the lowest level since the survey began in 2015.
Inflation has fallen significantly from its peak of 9.1% in June 2022, but remains well above the Federal Reserve’s 2% target. Moreover, prices have increased by a staggering 19.4% since January 2021, before the inflation crisis began.
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High inflation is putting severe economic pressure on most American households, forcing them to pay for everyday necessities like food and rent. Grocery prices have increased more than 21% since the beginning of 2021, and shelter costs have increased by 18.37%, according to FOX Business calculations. Meanwhile, energy prices have increased by 38.4%.
A car passes a gas station in Los Angeles on October 19, 2022. (Frederick J. Brown/via AFP/Getty Images)
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Rising prices are especially devastating for low-income Americans. This is because they tend to spend more of their already stretched salaries on necessities, and therefore have less flexibility in their lives. Save money.
The typical U.S. household had to pay $227 more per month in March to buy the same goods and services as a year ago, as inflation remains high. Americans are paying, on average, $784 more each month than they did during the same period two years ago, and $1,069 more than they did three years ago.
