Us households shelling out extra $717 a month in July

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Us households shelling out extra $717 a month in July

According to a new analysis from the Joint Economic Committee Republicans, the average American is shelling out an extra $717 a month.

The financial squeeze is due to the rising cost of a number of everyday goods, including cars, rent, food and health care. The consumer price index climbed 8.5% from the previous year's level in July, while the rapid pace of price increases decreased in July.

The figure was calculated by the JEC Republicans who launched the State Inflation Tracker in April to see how much more Americans are costing goods and services in July compared to how much households would have paid for the same items in January 2021, when inflation was 1.4%.

The average American household's $717 in July 2022 was costing the average American household $717, although prices did not change from June to July 2022, prices went up 13.3% from January 2021 to July 2022, the average American household's price was $717 in July 2022, according to the analysis.

Even if prices stopped increasing, the inflation already occurred between August 2021 and July 2022 would cost the average American household an extra $8,607.

Scorching-hot inflation has created financial pressures for most U.S. households, which have to pay more everyday necessities like food and rent. The burden is particularly disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily impacted by price fluctuations.

Inflation has eroded American workers' wages in the past, even though they have seen strong wage gains in recent months. According to the Labor Department, the real average hourly earnings decreased by 0.5% in July from the previous month. Real earnings dropped 3% on an annual basis in July.

While the boost to overall economic prospects is welcome, easing inflation will ring hollow with many down-market consumers whose wages are falling in real terms, said RSM chief economist Joe Brusuelas.

There was a reprieve for U.S. households last month in the form of which it contributed to the decline in headline inflation. The cost of energy fell 4.6% in July from the previous month, but it remains 32.9% higher than just one year ago, while gasoline prices fell 7.7% in July. They are up 44.9% from last year.

Injuries were persistently high, with other price increases being large in July. The cost of groceries went up by 1.3%, putting the 12 month increase at 13.1%, the highest since March 1979. Consumers continued to pay more for staples like cereal, chicken, milk, and fresh vegetables.

President Biden, who has been on the defensive for months over skyrocketing prices, lauded the less than expected report as evidence that inflation may be beginning to moderate, but experts cautioned that inflation remains abnormally high and could take months or even years to return to pre-pandemic levels.

Seema Shah, chief global strategist at Principal Global Investors, said that inflation will only decline at a painfully slow pace. The broadening and stickiness of price pressures suggests that headline CPI will fall to 6.5% this year, before the recession starts in 2023.